diff --git a/data-farming/apys.md b/data-farming/apys.md index b26be5c6..9273b933 100644 --- a/data-farming/apys.md +++ b/data-farming/apys.md @@ -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. + - Txs include: locking OCEAN, claiming passive rewards, claiming active rewards, and withdrawing rewards. + - 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.