The Honest Rate

Most four-digit APRs are a marketing decision. Ours is a division problem, and we would rather show the division than the adjective.

The early liquidity-provider program pays from validator block-reward overflow: roughly 77.9 million XOM per year of protocol emissions, a stream fixed by protocol rules. The published rate is that stream divided by the pool, and the pool is currently tiny, a few thousand dollars. A small denominator makes a huge percentage.

So the rate must fall as the pool grows, because the same overflow over a 10× pool is a 10× smaller rate. We publish that decline curve on /earn because you would work it out anyway, and because the people who join earliest deserve to know exactly why they earn more: they are taking the empty-pool risk.

The rest of the conditions, in one place:

• Rewards vest 30% immediately, 70% over 90 days.
• Emission begins at hard launch. The published figure is the early-provider rate; nothing accrues before launch, and no catch-up is paid for pre-launch epochs.
• LP positions carry impermanent-loss risk and smart-contract risk. Our liquidity contract set has been through a 7-pass internal audit with 86 dedicated tests; the third-party firm audit is scheduled before hard launch, not published yet.
• Rewards are paid in OmniCoin, whose value can fall.

If any figure in this post disagrees with the live API, the API wins: app.omnibazaar.com/api/v1/overflow/apr is public and updates continuously.

Every figure above comes from that endpoint. Hold your own.