[Market Info] How much Mining Rewards are there?
By: The Serenity Fund
Tags: Yield Farming, Ethereum, Defi, Liquidity Mining, Farming

This article lists the Mining Rewards and policies from major Defi players in the market, as of 3 Dec 2020. The Mining Rewards exclude: 1) platforms that give out tokens only for staking their own platform tokens or only for trading pairs involving their own platform tokens; 2) platforms that give out only interests and not platform tokens as rewards.

Comprehensive lists are from https://www.coingecko.com/en/yield-farming; https://debank.com/invest; https://coinmarketcap.com/yield-farming/

Below are the results of 24 defi platforms. Over 4 million USD worth of rewards is dished out EVERY DAY. (*Uniswap is yet to be voted but it’s expected to come in mid-Dec.)

​We have made a few observations from the table above:

1) The USD value of the rewards is much dependent on the prices of the platform tokens, e.g. the price of SUSHI has a very large bearing on the total rewards as well as the APY of each pool. And as the prices of these tokens are very much faster than the liquidity level, the resultant APY can be misleading (that’s why we did not disclose the APYs).

2) A lot of these platforms are new. A large portions of these platforms have just been created a few months back, if not only weeks. Some do not even have a product yet. There’s question mark on the value proposition of these platforms, and so should every investor be sensible about the execution risks. If you are really defi-enthusiastic, we would rather encourage you to invest a little bit into the platform tokens first, so that your liquidity principal is not at risk; it’s more risky but the exposure is much smaller.

3) The mining rewards are at its peak. Mining rewards are diminishing in the long run. So what you get today might be less tomorrow. It’s not fair to assume that the rewards today to last forever, even it’s announced so, the community governance might change it. So APY is a relatively measure but not an undertaking of your earnings for the year. Mining Rewards is the way, and not the end.

4) Eventually, some platforms will emerge as the new cornerstones of the defi industry, and be of long-term value to the blockchain industry or even the financial industry as a whole. We are moving forward as a meaningful force in the industry, collectively bringing changes. But some projects will perish, some will be proved to be dysfunc, and some will become scams. Only time will tell. If you believe in the platform, be part of it — use it and be involved in the community — and do not just look at the price. What made Ethereum great today is not its price, but the people building it. So true for other projects.

5) Do not assume stablecoins are of the same risks or no risks. Do not assume derivatives of ETH or BTC are the same as ETH and BTC. There are risks in design, security and execution. Understand the risks you are taking, before you take them. Do not underestimate the market efficiency and how smart the other people in this industry are — it’s a jungle as there’s no law other than code.

Follow our twitter as PM if you need the reference links for these above mining reward program’s sources. @serenityfund

(Serenity Team, 4 Dec 2020)

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