Merge pull request #1226 from oceanprotocol/issue1225-add-sample-apy-calculations

Add sample apy calculations to v2

SUMMARY.md

@@ -29,6 +29,7 @@
   * [Join a Data Challenge](user-guides/join-a-data-challenge.md)
   * [Sponsor a Data Challenge](user-guides/sponsor-a-data-challenge.md)
   * [Get Started Data Farming](user-guides/get-started-df.md)
+  * [Estimate your APYs](user-guides/how-to-df-estimate-apy.md)
   * [Harvest More Yield Data Farming](user-guides/how-to-data-farm.md)
   * [Claim Rewards Data Farming](user-guides/claim-ocean-rewards.md)
   * [Liquidity Pools \[deprecated\]](user-guides/remove-liquidity-pools.md)
@@ -112,12 +113,12 @@
   * [Deploying C2D](infrastructure/compute-to-data-minikube.md)
   * [C2D - Private Docker Registry](infrastructure/compute-to-data-docker-registry.md)
 * [🤑 DeFi](defi/README.md)
-* [💰 Rewards](rewards/README.md)
-  * [Data Farming 101 (White Belt)](rewards/df-intro.md)
-  * [DF Basic Actions (Blue Belt)](rewards/df-basic.md)
-  * [DF Max Out Yield (Purple Belt)](rewards/df-max-out-yield.md)
-  * [DF "ve" in veOCEAN (Brown Belt)](rewards/veocean.md)
-  * [DF Emissions & APYs (Black Belt)](rewards/df-emissions-apys.md)
+* [💰 Data Farming Rewards](rewards/README.md)
+  * [Data Farming 101](rewards/df-intro.md)
+  * [Passive Farming veOCEAN](rewards/veocean.md)
+  * [Max Out Active Rewards](rewards/df-max-out-yield.md)
+  * [Complete User Guides](rewards/df-basic.md)
+  * [Emissions & APYs](rewards/df-emissions-apys.md)
 * [🤝 Contribute](contribute/README.md)
   * [Partners & Collaborators](contribute/projects-using-ocean.md)
   * [Contributor Code of Conduct](contribute/code-of-conduct.md)

rewards/README.md

@@ -10,10 +10,6 @@ coverY: 0
 
 The purpose of Ocean Protocol's Data Farming dApp reward system is to incentivize the curation and publishing of high-quality data NFTs in the Ocean Ecosystem. Data Farming participants earn OCEAN rewards for these activities. At a minimum, Data Farmers earn "passive rewards" for locking their OCEAN tokens to get veOCEAN tokens in return. Then, Data Farmers can maximize their yield by earning "active rewards" using their veOCEAN tokens. Active rewards are generated by participants voting on their favorite Ocean ecosystem NFTs by allocating their veOCEAN to these assets, thus gaining a portion of these asset sales.
 
-### The belt system
-
-Earn your white, blue, purple, brown, and black belts in Data Farming knowledge by reading our docs on this topic in increasing difficulty!
-
 ## veOCEAN
 
 Learning about [veOCEAN](veocean.md) will help you answer the question "What is the purpose of holding veOCEAN?" & give insights on how veOCEAN (vote-escrowed OCEAN) works. It will teach you everything you need to know about why it exists and how it works.

rewards/df-basic.md

@@ -1,14 +1,14 @@
 ---
-description: Learn the basic moves to start kicking a** Data Farming
+description: Show you can complete all User-Guides as the last steps to master Data Farming!
 ---
 
-# DF Basic Actions (Blue Belt)
+# Complete User Guides
 
 <figure><img src="../.gitbook/assets/gif/neo-kinda-martial-arts.gif" alt=""><figcaption><p>Like Neo, you have great potential.</p></figcaption></figure>
 
 ### Get Started
 
-Our [User Guides](../user-guides/README.md) get you started Data Farming quickly to do the basic operations. Follow these guides to earn your blue belt in Data Farming understanding.
+Our [User Guides](../user-guides/README.md) get you started on Data Farming quickly so you can complete all operations. Follow these guides to get a complete handle on all Data Farming activities.
 
 {% content-ref url="../user-guides/get-started-df.md" %}
 [get-started-df.md](../user-guides/get-started-df.md)

rewards/df-emissions-apys.md

@@ -1,11 +1,10 @@
 ---
 description: >-
-  Hey there, Bruce Lee! If you can understand the emission curves and estimated
-  APYs, then you've earned yourself a solid black belt in Data Farming
-  understanding 🥋
+  Hey there champ! If you can explain the emission curves and 
+  teach how to calculate APYs, then you've mastered Data Farming
 ---
 
-# DF Emissions & APYs (Black Belt)
+# Emissions & APYs
 
 <figure><img src="../.gitbook/assets/gif/neo-bb.gif" alt=""><figcaption><p>Like a true master of The Way of Data Farming.</p></figcaption></figure>
 

rewards/df-intro.md

@@ -2,7 +2,7 @@
 description: Learn the fundamentals of The Way of Data Farming 🧑‍🏫
 ---
 
-# Data Farming 101 (White Belt)
+# Data Farming 101
 
 <figure><img src="../.gitbook/assets/gif/morpheus.gif" alt=""><figcaption><p>Meet your sensei.</p></figcaption></figure>
 
@@ -20,6 +20,14 @@ Unlike yield farming in DeFi, data farming has real intrinsic utility for Ocean
 
 Every week OCEAN rewards are paid out to Data Farmers in two different ways: **passive** rewards and **active** rewards. The two reward functions produce different variable APYs.
 
+#### Splitting the Pie
+
+Each Data Farming weekly round has a pool of OCEAN rewards, where 50% of the pool is paid out in the form of passive rewards & 50% in the form of active rewards.
+
+| Passive Rewards | Active Rewards |
+| --------------- | -------------- |
+| 50%             | 50%            |
+
 #### What are Passive Rewards?
 
 Passive rewards are the OCEAN rewards paid to Data Farmers just for locking their OCEAN tokens.
@@ -36,23 +44,11 @@ Active rewards are governed and defined by the [Reward Function](df-max-out-yiel
 
 [To start getting active rewards, go here.](../user-guides/how-to-data-farm.md)
 
-#### Splitting the Pie
+#### Estimating APY
 
-Each Data Farming weekly round has a pool of OCEAN rewards, and 50% of the pool is paid out in the form of passive rewards & 50% in the form of active rewards.
+To estimate your APY effectively, you will need a good understanding of how Passive and Active Rewards work. Therefore you should make sure to complete reading the documentation on Data Farming.
 
-| Passive Rewards | Active Rewards |
-| --------------- | -------------- |
-| 50%             | 50%            |
-
-### What are Publisher Rewards?
-
-<figure><img src="../.gitbook/assets/gif/just-publish.gif" alt=""><figcaption><p>Publishing makes you *more* OCEAN rewards</p></figcaption></figure>
-
-Data Farming strongly incentivizes publishing assets in the Ocean ecosystem by giving double the active rewards to Data Farmers that allocate to their own published assets.
-
-How is it calculated? _All the veOCEAN a Data Farmer has allocated to an asset they’ve published is **doubled for the rewards calculation.**_
-
-You can read more about the implementation [in this blog post](https://blog.oceanprotocol.com/data-farming-publisher-rewards-f2639525e508).
+To help you understand Data Farming and APYs a bit better, we have provided [a couple of scenarios](../user-guides/how-to-df-estimate-apy.md) so you can easily get an overview of how your yield might behave depending on your decisions.
 
 ## [GET STARTED DATA FARMING HERE.](https://df.oceandao.org)
 

rewards/df-max-out-yield.md

@@ -1,10 +1,10 @@
 ---
 description: >-
-  If you've gotten this far, then you're half way to getting a black belt in
-  Ocean Protocol's Data Farming dApp! 🥋
+  If you've gotten this far, then you're half way to becoming a pro in
+  Ocean Protocol's Data Farming dApp!
 ---
 
-# DF Max Out Yield (Purple Belt)
+# Max Out Active Rewards
 
 <figure><img src="../.gitbook/assets/gif/i-know-kung-fu.gif" alt=""><figcaption><p>You know enough to be dangerous.</p></figcaption></figure>
 
@@ -44,6 +44,16 @@ The Reward Function (RF) governs how active rewards are allocated to Data Farmer
 
 For mathematicians and coders, you can find this code inside [calcrewards.py](https://github.com/oceanprotocol/df-py/blob/main/df_py/volume/calc_rewards.py) in the Ocean Protocol [df-py repo](https://github.com/oceanprotocol/df-py/)!
 
+### What are Publisher Rewards?
+
+<figure><img src="../.gitbook/assets/gif/just-publish.gif" alt=""><figcaption><p>Publishing makes you *more* OCEAN rewards</p></figcaption></figure>
+
+Data Farming strongly incentivizes publishing assets in the Ocean ecosystem by giving double the active rewards to Data Farmers that allocate to their own published assets.
+
+How is it calculated? _All the veOCEAN a Data Farmer has allocated to an asset they’ve published is **doubled for the rewards calculation.**_
+
+You can read more about the implementation [in this blog post](https://blog.oceanprotocol.com/data-farming-publisher-rewards-f2639525e508).
+
 ### What are Ranked Rewards?
 
 In Data Farming Round 23 Ranked Rewards were introduced to smooth out the reward distribution by using a logarithmic function.

rewards/veocean.md

@@ -1,10 +1,9 @@
 ---
 description: >-
-  Let's discuss the "ve" in veOCEAN for our last jutsu before earning a black
-  belt in Data Farming knowledge!
+  Learn the basic moves to start kicking a** at Data Farming
 ---
 
-# DF "ve" in veOCEAN (Brown Belt)
+# Passive Farming veOCEAN
 
 <figure><img src="../.gitbook/assets/gif/neo-blocking.gif" alt=""><figcaption><p>Data Farming is getting effortless.</p></figcaption></figure>
 
@@ -62,6 +61,8 @@ After choosing your lock period and locking up your OCEAN into the vault, you wi
 
 veOCEAN is non-transferable. You can’t sell it or send it to other addresses.
 
+_To help you more easily understand this, we have created [a couple of examples](../user-guides/how-to-df-estimate-apy.md) so you can more easily visualize the impact of your decisions on your overall yields._
+
 ### Linear Decay
 
 Your veOCEAN balance will slowly start declining as soon as you receive it.
@@ -81,10 +82,6 @@ If you lock 1.0 OCEAN for 4 years, you get 1.0 veOCEAN at the start.
 
 At the end of your 4 years, your OCEAN is unlocked.
 
-#### Linear Decay
-
-**Your balance of veOCEAN may be less than the amount when you first locked your tokens because your veOCEAN balance decreases linearly over time until the Lock End Date when you can withdraw your OCEAN tokens.** This is because rewards are designed to be paid out weekly in a decreasing amount until you unlock your OCEAN tokens entirely. The veOCEAN code is a fork of Curve's battle-tested [veCRV](https://curve.readthedocs.io/dao-vecrv.html) token code.
-
 ### Replenishing your veOCEAN
 
 You can choose to update your lock and replenish your veOCEAN balance at any time.

user-guides/README.md

@@ -34,20 +34,28 @@ Buy, mint, and sell NFTs using the Ocean Market following the guides below.
 [using-ocean-market.md](using-ocean-market.md)
 {% endcontent-ref %}
 
-### Make yield from dataset and algorithm NFTs on-chain ⛓️
+### Farm data like a pro 😎🥕
 
-Farm data like a pro. 😎🥕
+Earn rewards by obtaining veOCEAN, farm yield by curating datasets, and optimize your APY by publishing Data & Algorithm NFTs on-chain. ⛓️
 
 {% content-ref url="get-started-df.md" %}
 [get-started-df.md](get-started-df.md)
 {% endcontent-ref %}
 
+{% content-ref url="get-started-df.md" %}
+[get-started-df.md](get-started-df.md)
+{% endcontent-ref %}
+
+{% content-ref url="claim-ocean-rewards.md" %}
+[claim-ocean-rewards.md](claim-ocean-rewards.md)
+{% endcontent-ref %}
+
 {% content-ref url="how-to-data-farm.md" %}
 [how-to-data-farm.md](how-to-data-farm.md)
 {% endcontent-ref %}
 
-{% content-ref url="claim-ocean-rewards.md" %}
-[claim-ocean-rewards.md](claim-ocean-rewards.md)
+{% content-ref url="how-to-df-estimate-apy.md" %}
+[how-to-df-estimate-apy.md](how-to-df-estimate-apy.md)
 {% endcontent-ref %}
 
 ### Antique Stuff 🏺

user-guides/how-to-data-farm.md

@@ -42,8 +42,6 @@ That's it! You've successfully allocated (aka "voted on") your favorite assets i
 
 Do you have multiple wallets? Say you want to send rewards to someone you 💖 We have a solution for that! Data Farming's [Delegate](https://df.oceandao.org/delegate) feature allows you to transfer your veOCEAN allocation power to another wallet address. Another reason for delegating - you might be able to earn a higher annual percentage yield (APY) by delegating your active rewards to an address that more efficiently manages your allocation. For all these reasons and more, then you might want to delegate - go to [https://df.oceandao.org/delegate](https://df.oceandao.org/delegate) to make the magic happen ✨
 
-
-
 When you delegate, you transfer 100% of your veOCEAN allocation power for a limited period. You can delegate your active rewards \*without\* the need for reallocation and transaction fees! Note that after you delegate, then you cannot manage your allocations until the delegation expires. The delegation expiration date is the same as your veOCEAN Lock End Date at the time of delegation. If necessary, you can extend your Lock End Date before delegating. You can also cancel your delegation at any time 💪 Once delegated, rewards will be sent to the wallet address you delegated to. Then, the delegation receiver is in charge of your active rewards and is responsible for returning those back to you should you choose to do so.
 
 Follow these steps to delegate your veOCEAN:

user-guides/how-to-df-estimate-apy.md

@@ -0,0 +1,42 @@
+---
+description: >-
+  Learn how to use basic math and a simple spreadsheet to estimate your
+  Passive Rewards APY and get deeper into Active Rewards APY.
+---
+
+<figure><img src="../.gitbook/assets/gif/mafs.gif" alt=""><figcaption><p>K.I.S.S.</p></figcaption></figure>
+
+# veOCEAN and your APY
+
+Before we start, let's do a quick recap.
+
+Rewards are earned by users that hold and use their veOCEAN to help the protocol improve and grow. Here are some good lessons to improve the outcome of your APY.
+1. To improve your yield, you will need to make good decisions for how long you'll choose to lock. The best way to do this is to learn how [Time Locking](/rewards/veocean.md#veocean-time-locking) and [Linear Decay](/rewards/veocean.md#linear-decay) function.
+2. APYs are always initially calculated by dividing the amount of OCEAN you have received from rewards, by the relative amount of OCEAN you have locked up.
+3. As a rule: _Wherever APYs are provided to the user in the app (df.oceandao.org), they are caclulated assuming an initial 4-year lock up period with a weekly schedule of compounding rewards into an updated 4-year lock. This estimate works provided current: number of users, reward emissions, and other reward parameters stay constant while excluding all tx fees._
+
+Now that we got that out of the way, let's work through the examples and keep it as simple as possible.
+
+### Estimating Passive APY
+
+To make it easier to estimate your APY, [we have created a simple spreadsheet](https://docs.google.com/spreadsheets/d/1zzuW5pBbX6j6hZL_XtJDtSR2-rDHa_LGOEwgoQ4D8lk/edit?usp=sharing) that let's you easily estimate your Passive APY.
+
+We have provided 2 sheets as an example of locking-up 10,000 OCEAN for:
+1. A 4-year investment period
+2. A 6-mo investment period
+
+The above are simplified examples meant for everyone to understand. They are naive investment strategies and are meant to provide you, the reader, with some examples to build upon. You can use these as a reference to create your own plan, so feel free to make a copy of this spreadsheet and customize it to your needs and wants.
+
+### Estimating Active APY
+
+Active Rewards are a bit more complicated and depend on many factors that are currently hard to predict accurately. It is unlikely for the user to get a practical result, which is why we don't offer a tool to estimate Active APY right now.
+
+You can easily expand the spreadsheet above to support basic, naive calculations for Active Rewards such as defining a constant percent yield per week.
+
+Having said this, we do provide a thorough dashboard that provides historical and ongoing summaries of APY, Data Consume Volume, and veOCEAN allocations per-round.
+
+<figure><img src="../.gitbook/assets/rewards/curate-datasets.png" alt=""><figcaption><p>Curate like a Pro.</p></figcaption></figure>
+
+You can also [learn how rewards are calculated here](../rewards/df-max-out-yield.md#how-rewards-are-calculated) to understand more about what's happening behind the scenes of each Data Farming round.
+
+Finally, you can [review the implementation inside df-web](https://github.com/oceanprotocol/df-web/blob/main/src/utils/rewards.js) to understand how APYs are calculated at the frontend/UI level.