4 ms·

Just looking at that home page, they are saying the APY is 725,002.4%. If that isn't an insane red flag, I don't know what is.

hi5eyes 5y ago
plenty of ohm forks/ponzis with 6 figure apy, until they rug/the reward token plummets ofc
vertis 5y ago
That APY is misleading in several ways. It implies that if you put $100 in it will be 7250x bigger in a year. But this assumes that the price won't change, i.e. you get one token for $100 now and in a year you can exchange 1 token for $100. In reality this seems unlikely, given that Eurphoria($WAGMI) are giving out 0.81% per 8 hours 12% per 5 days, and doubling the amount of tokens in 30 days. So in 30 days I should be able to get $200 back out, and in 1 year I should be able to get out ~$725000. 2 years and I can take out over 3 billion. Yeah okay. It's more complex than that with bonded DAI, etc, so there is some fractional reserve of capital (at the moment it looks like 10%). The other thing with this and all these APY numbers (yield farming, incl) is that they imply that the numbers will stay the same. I.e. will hold for a whole year. In watching uniswap/sushiswap/etc this is not even remotely accurate. Those numbers (even 200%) are fleeting, they last for a day or a week. It's not stable and therefore those numbers are meaningless. If you're small, even being a liquidity providers on a more stable pair which return ~20-30% (i.e. a possible number) don't stack up once you include Ethereum fees. It takes quite a bit of time to earn back all the fees you spent setting it up (unless you have lots of capital) For comparison, OHM $100 now should be $4000 after one year or $300,000 after two years.
- EMM_386 5y ago
  >So in 30 days I should be able to get $200 back out, and in 1 year I should be able to get out ~$725000. 2 years and I can take out over 3 billion. Yeah okay. That's why these APYs make zero sense, I don't understand how anyone can pass this off with a straight face (unless this truly is just a game to sucker in people bad at math). You can't turn $100 into $3 billion in two years. Obviously. They are claiming a return of 2% per day. Please. A penny stock can claim it's "average return" is 100% per year because it went from 1 cent to 4 cents in 2 years. That isn't saying much.

hi5eyes 5y ago

plenty of ohm forks/ponzis with 6 figure apy, until they rug/the reward token plummets ofc

vertis 5y ago

That APY is misleading in several ways. It implies that if you put $100 in it will be 7250x bigger in a year. But this assumes that the price won't change, i.e. you get one token for $100 now and in a year you can exchange 1 token for $100. In reality this seems unlikely, given that Eurphoria($WAGMI) are giving out 0.81% per 8 hours 12% per 5 days, and doubling the amount of tokens in 30 days. So in 30 days I should be able to get $200 back out, and in 1 year I should be able to get out ~$725000. 2 years and I can take out over 3 billion. Yeah okay. It's more complex than that with bonded DAI, etc, so there is some fractional reserve of capital (at the moment it looks like 10%). The other thing with this and all these APY numbers (yield farming, incl) is that they imply that the numbers will stay the same. I.e. will hold for a whole year. In watching uniswap/sushiswap/etc this is not even remotely accurate. Those numbers (even 200%) are fleeting, they last for a day or a week. It's not stable and therefore those numbers are meaningless. If you're small, even being a liquidity providers on a more stable pair which return ~20-30% (i.e. a possible number) don't stack up once you include Ethereum fees. It takes quite a bit of time to earn back all the fees you spent setting it up (unless you have lots of capital) For comparison, OHM $100 now should be $4000 after one year or $300,000 after two years.

EMM_386 5y ago
>So in 30 days I should be able to get $200 back out, and in 1 year I should be able to get out ~$725000. 2 years and I can take out over 3 billion. Yeah okay. That's why these APYs make zero sense, I don't understand how anyone can pass this off with a straight face (unless this truly is just a game to sucker in people bad at math). You can't turn $100 into $3 billion in two years. Obviously. They are claiming a return of 2% per day. Please. A penny stock can claim it's "average return" is 100% per year because it went from 1 cent to 4 cents in 2 years. That isn't saying much.