Platform Rewards: Current vs Projected APR

When staking Curve LP tokens on the platform, APR numbers are displayed on each pool. This page explains each number in a bit more detail.

How Convex distributes rewards?

When you deposit your collateral in Convex, Convex acts as a proxy for you to receive boosted rewards. In that process Convex harvests the rewards and then streams it to you. Due security and gas reasons, your rewards are streamed to you over a 7 day period after the harvest.

Lets go through an example to examine the effects of this mechanic:

"PoolA" just recieved gauge weight and there is total of $1000 TVL in the pool for 10 stakers of $100 each. Accumulated rewards for depositors are $10 during harvest time. (This creates a Current APR.)

Over the course of this 7 day distribution period, if

• PoolA recieves new depositors & new TVL , new depositors would immediately get their share of this harvested rewards.

• Inversely, if users unstake & withdraw from PoolA within this 7 day timeframe, they forfeit the accrued rewards of past harvest to the rest of the pool depositors.

Due this 7 day lag and its effects, we use a Current & Projected APR making this distinction clearer to users and set clear expectations.

Current APR

This is the -current- net yield percentage you will get on your collateral when you are in the pool. All fees are already subtracted from this number. I.e. if you have 100k in a pool with 10% current APR, you'll be receiving 10k USD worth of rewards per year. This yield is based on all the currently active harvests which have already been called and are currently being streaming to active participants in the pool over a 7 day period from the moment a harvest was called. When you join the pool, you will instantly receive this yield per block.

Projected APR

This is the yield percentage that is currently being generated by the pool, based on the current TVL, current Curve Gauge boost that is active on that pool and rewards priced in USD. If all parameters stay exactly the same for a few weeks (TVL, CRV boost, CRV price, CVX price, potential 3rd party incentives), this will eventually turn into the current APR. As that scenario is very unlikely to happen, projected APR should be taken with a grain of salt. Similarly, all fees are already abstracted from this number.