ARC-1: Change From APYs to APRs on Astroport.fi

Proposal: Change From APYs to APRs on Astroport.Fi

Proposal Type: Astroport Improvement Proposal - Social Signaling

Proposal Authors: @lex_node; @danku_r

Issue TLDR:

The display of token reward rates (APRs and APYs) on the pools page of astroport.fi is currently somewhat confusing.

Proposal TLDR:

We suggest switching from an APY display to an APR display and making more of the assumptions involved in calculating APRs and APYs apparent on the UI.

Background:

Currently, the primary displayed token reward rate for each pool is a “Combined APY” figure. Hovering your cursor over the adjacent information bubble describes this as an “estimated Combined APY calculation” which “combines all individual APRs and assumes daily compounding.”

Hovering your cursor over a given “Combined APY” figure yields a list of other APYs and a “Total APR”:

The Astroport website Terms and Conditions state the following:

In turn, the Astroport Disclaimers and Disclosures set forth a series of explanations of how APYs and APRs are calculated and state that they are unlikely to be accurate, including because the APYs assume daily compounding, when in fact the Astroport protocol only compounds Pool APR:

Although this explanation is helpful, it is not directly linked in the UI. Furthermore, it raises the question of why APY displays are useful, considering they assume compounding but many users may not extrinsically compound.

Proposal:

We propose that the website team should modify astroport.fi to:

  • display APRs for all reward types
  • make clear that rewards rates are UST-denominated
  • make clear that reward rates are projections based on the last 24 hours of performance.

We propose that the following points also be considered by the website team:

  • Should APYs still be displayed for reward types that are actually auto-compounded by the Astroport protocol (currently, only pool-trading-fee-rewards)?
  • Should APRs and APYs be calculated based on a longer period of time (e.g., average of reward rates over the prior 7 days)?

Governance Action:

Since astroport.fi is not under direct ASTRO governance control, we request non-binding social-signal-boosting of support for the proposal. Because xASTRO/vxASTRO voting has not yet been activated, we request that social support be signaled by replying here.

Additionally, of course, we encourage further discussion and suggestions on the same topic.

Disclaimers/Conflicts of Interest:

Both authors are paid service providers of Delphi Labs Ltd., which maintains astroport.fi. Additionally, both authors have builder development stakes of ASTRO tokens.

Copyright

Copyright and related rights waived via CC0 .

20 Likes

I agree, APR is more realistic as I would guess most people don’t compound daily to reflect the APY numbers. I also believe that the longer average to calculate the rate is more accurate vs 24 hours. I think 7 days would be a minimum but 14 day might be a more accurate picture as large spikes in volume can skew the numbers.

3 Likes

I agree. APRs are more realistic. The numbers should reflect a 7 day time period to account for market dynamics. If auto-compounding was a feature on all rewards to ensure the APY rates are achieved then I would agree with APY being displayed. A compromise could be to display columns for both APR & combined APY to show the differences if compounded.

3 Likes

Fully agree with the above proposal. Also APR calculation for 7 days would be best.

1 Like

If there is no existing auto-compounding functionality for the rewards emissions, then the rates shown should not be based on any auto-compounding nor should they be based on assuming the users are manually compounding. The rates displayed should match what the system actually returns.

This is very deceptive to be doing what you’re doing with these false rates - I assumed that it was a UI bug or an oversight, Im shocked that this was intentional. Implement this change please. [edited for clarity]

3 Likes

I completely agree as well - change to APR. And I am also in support of calculating the APR over a longer period than 24H.

It is not representative of a long term position to only have a 24H APR reported. Perhaps multiple could be reported?

  • 24H
  • 1W
  • 1M
3 Likes

I am convinced that a clearer interface is the first step in making the protocol great. Seeing the APY of the LPs clearly is a sign of transparency!

1 Like

Multiple time frames could sounds good to me.

1 Like

Agreed - showing APRs is much more intuitive than APYs. Plus, most other places show APRs already, most notably:

  • Each protocols own web UIs
  • Coinhall

As well, averaging APR over the period of 7 days would be more representative of an average yield a user might expect from providing liquidity.

3 Likes

don’t think anything deceptive was intended

just that pool-fees do autocompound; other reward types don’t

so when aggregating to a single figure, if picking APR, pool-fees are understated; if picking APY, Astroport Generator emissions are potentially overstated (for some users)

but agreed–APR better and it’s what people seem to want

1 Like

Yes fully support this.
Thank you for the work in making this proposal.

1 Like

I agree and think APRs make a lot more sense.
I also think the timeframe, at 24 hours, provides little valuable information. A longer time frame of 30 days would provide far more accurate and meaningful data while also encouraging the right message that the Astro community and team are long-term focused.

1 Like

I agree with the proposal, APR is a better and more realistic in terms of evaluating returns from non-autocompounding farms like these.

In full support of the above proposal, as APRs are a more realistic portrayal of how positions accrue value and are managed (leave the APY calculations to auto-compounders). Astroport’s contracts aren’t auto-compounding so why should the UI be assuming that users are?

On the first point proposed to be considered by the website team, believe the displaying of APYs/APRs should stay true to the functions of the Astroport contracts themselves. If the pool pair contracts auto-compound fees (they do), then display the APY (viewable when hovering with cursor); if the astro-generator contracts aren’t auto-compounding reward tokens (they aren’t), then display the APR.

On the second point proposed to be considered by the website team – displaying APRs/APYs across broader ranges of days would allow potential liquidity providers to make better informed decisions (arguably showing only the current APR/APY can be incredibly misleading). Fully support this point and urge the website team to include this update.

1 Like

UPDATE: Based on the feedback here and elsewhere, astroport.fi has been updated to primarily display APRs. Disclaimers/Disclosures have also been updated accordingly.

Thanks everyone for weighing in here. Feel free to add more proposals and discussions to the forum–Astroport governance is up to us all.

4 Likes

Great ideas here. could we select how we automiatically view APRs 24hr/7D/1M? I was also wondering if when we hovered over the APR it would pop up with a chart that shows the history of the APR on a graph, with a summary of 24hr/7D/1M rates at the bottom.

on a side note the APY that does autocompound, how do LP providers receive this?