Many of my friends who participate in LP mining with Hyperion have asked a common question: why does the pool show a stablecoin APR of 18%, but I only get 13%? Before answering this question, we need to clarify what LP mining is. In simple terms, it means providing liquidity in a DEX within a certain price range. When others trade on the DEX and their transactions fall within your price range, you earn fees! For example, if you set the price range for the USDT/USDC pool at 1.002 ~ 1.006 for USDT, you will only make money when users exchange USDC for USDT at a price between 1.002 and 1.006. However, when calculating, the pool calculates the overall yield, while individual participation in LP is affected by several factors: (1) Range width: the narrower the range, the higher the yield, and vice versa. This is similar to how parking fees in the city center are many times higher than those in suburban parking lots. Therefore, different people setting different widths will affect the...
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