RE: SPEW pool - first payouts sent - full update.

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Thanks for running the pool and all the math!

At the end of the 90 days or anytime before when requesting withdrawal, how is the amount of leo calculated? Just our current percentage times the total leo balance? And I cant remember if we earn any of the pool fees.

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The pool fees get gradually added in to the pool, and just reflect in the general asset values - they are not accounted seperately.

When a withdrawal is requested, all calculations will be based on the USD share of the total assets at that time. Because of the nature of liquidity pools, the number of tokens may be different to the starting point. As people put ETH in the pool (not SPEW, the overall pool) they are taking out WLEO. This pushes the WLEO price up, but means there are less tokens in there (and more ETH).

For example, if you wanted a withdrawal, right now, based on the above numbers, your withdrawal amount would be 1078 leo. This is less than the 1200 total you deposited. As it stands right now, SPEW has "lost" WLEO and gained extra ETH.

Basically, the funds you put in give a percentage share of the total assets, 2.64% after adding your new funds in. For a withdrawal I take the total pool assets USD value * 2.64% (would be $260.96. with LEO at $0.242, that equals 1078 LEO.

Does that make sense - I think I confused myself trying to explain it.

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Thanks for the explanation. I had expected to earn some of the eth gained to make up for the leo loss.

I will just have to expect a net loss of leo at the end of the 90 days. Oh well at least I am supporting leo by being a part of the pool.

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Let's look at what would have happened if you joined the wleo/eth pool on your own. I'll just use your initial 609 starting point, and calculate what would have happened over the 2 weeks...

Starting funds:
609 LEO at 0.14 $85.26
Swap half to ETH
now you have:
304.5 LEO = $42.63
0.13184 ETH = $42.63

Put that in the pool. Over the 2 weeks, the wleo/eth pool has "lost" around 20% of the LEO tokens, and gained 20% ETH.

after 2 weeks - you would have had:
243.6 LEO (and
0.1582 ETH.

If you withdrew and converted ETH back to LEO you would have 487.2 a "loss" of 121.8 LEo tokens. This calculation ignores all the GAS fees along the way which would have increased the "lost" LEO.

If you had withdrawn from SPEW at the 2 week point, I would have sent you almost exactly the same amount of LEO -

$117.94 (your share of SPEW after 2 weeks) / 0.242 (LEO price) = 487.355

So in broad terms your outcome is basically the same as if you had done the pool yourself.

This is why the bounty program from LeoFinance exists, the LEO payouts each fortnight should cover any loss of tokens.

I hope this helps clarify things. I had to check this as I questioned my methodology, but the above calculations re-affirmed in my head that I am working all this out fairly.

Let me know if you need any more info from me, or wish to change anything.

JK.

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