So yesterday I entered a Curve pool that is split across 3 stablecoins. The pool pays 28%, but today morning I notice that the value of my share in the pool has gone down. Sure, the value only dropped by a small amount, but I’m wondering why this is? None of the stables in the pool have lost peg.
Probably, your amount is reduced due to entrance fees?
The APY was probably not fixed. Check for what the minimum could be. For example, I earn a minimum of 36% for DVDX so i know it can’t drop lower than that. Not familiar with CURVE but that may have been the reason
Something is up. I just checked my anticrypto3 pool on polygon and it only shows $3m volume?
>the value of my share in the pool has gone down
If more people add liquidity to the pool, your share of the pool goes down but the value does not.
The pool is 100, you add 25, so the pool is 125 now. Your share is 25/125 = 20%. You will earn 20% of the trading fees the pool earns. Your value is 25.
The next day Reddit apes the pool and adds 2500, so the pool is now 125+2500 = 2625. Your share is 25/2625= 0.95%. You will earn 0.95% of the trading fees the pool earns. Your value is still 25.
The APY goes up/down daily depending on your share of the pool (your split of the trading fees earned) and the amount of trading going on inside the pool (which generates trading fees).
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