Akronswap
  • 🐻 Introduction
    • What is Akronswap?
    • Dynamic Swap Fee Mechanism
    • LP: Source of Loss
    • Trader: Competitive prices for small swaps
    • Vision
  • 🧑‍🌾 Incentive Programs
    • Liquidity Incentive Program
  • 🧑‍🤝‍🧑 Tokenomics (tentative)
    • Distribution
  • 🔐 Disclaimer
    • Risks
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  1. 🐻 Introduction

LP: Source of Return

Last updated 5 months ago

Return comes from two sources.

  • Lending protocol: Interest revenue by holding ibTokens

  • Akronswap: swap fee revenue by restaking ibTokens to Akronswap pool

Below is an example of expected APY for Akronswap waWETH + waUSDC LP token, taking into consideration average annual LVR.

LPs can lose to arbitrageurs when price changes significantly. Akronswap gives close to 100% of the arbitrage profits from arbitrageurs back to LPs through dynamic swap fees.