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DF: Follow-up to #1380: give costs content its own subsection (PR #1382)

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Trent McConaghy 2023-11-21 09:59:31 +01:00 committed by GitHub
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@ -35,11 +35,15 @@ The yield for one week is **Weekly Percentage Yield**, or **WPY**. For example,
The yield for one year is **Annual Percentage Yield**, or **APY**. APY can be estimated from WPYs. Assuming no compounding, `APY = WPY*52`.
**Costs** include:
### Costs
Costs should not be under-estimated. Eg if you're only doing Passive DF, and you lock a small amount of OCEAN for a short time, costs may exceed your gross income.
**Costs include:**
- Gas fees for transactions (txs) on the various chains. Eg veOCEAN, passive DF rewards, and Volume DF rewards are on Ethereum mainnet. Predictoor DF is on Sapphire mainnet.
- Txs include: locking OCEAN, claiming passive rewards, claiming active rewards, and withdrawing rewards.
- Costs should not be under-estimated. Eg if you're only doing Passive DF, and you lock a small amount of OCEAN for a short time, costs may exceed your gross income.
- To compound returns, these txs need to be repeated. The ideal frequency to compound rate is whatever maximizes your yield - which depends on how much OCEAN you've locked, tx fees, etc.
- Cost of compute hardware to run Predictoors, e.g. on cloud services
The **[guide to estimate APYs](apys-guide.md)** drills deeper into estimating APYs.