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Swaap token net APR

Some pools offer additional rewards on top of the market making yields in the form of Swaap tokens or partner DAOs tokens.

Such pools can be identified by the associated symbols in the rewards section of the application.

Swaap aims to be a public good & decentralized protocol. We will use a token to govern the protocol. The token will not be launched before the protocol has achieved a certain level of maturity. The tokenomics of the protocol have not been decided yet.

The token is not live yet, but you can already start earning it!

By providing liquidity into Swaap pools, you become eligible for future token rewards (once the token is released). This functions similarly to a liquidity mining program but retroactively. The number of tokens you will be able to earn is proportional to the amount of liquidity deposited and the timeframe.

In order to help you compare providing liquidity into Swaap against other potential yield options, a Swaap Token Net APR is displayed.

This Token Net APR is based on a hypothetical Fully Diluted Valuation (FDV) of the protocol of $100m. Please note that this figure is for illustrative purposes only and should not be considered as a projection or expectation. Its sole purpose is to enable you to integrate all information into your decision-making process regarding whether or not to provide liquidity to Swaap.

To build your own hypothesis regarding the value of these rewards, you can adjust the Swaap Token Net APR based on your own assumptions around the FDV of the protocol. For example:

  • If your assumption is that the FDV is $50m, you should multiply the Token Net APR by 0.5 (50/100 = 0.5).
  • If your assumption is that the FDV is $200m, you should multiply the Token Net APR by 2 (200/100 = 2).

Example Case:

Let’s consider an example to understand the Swaap Token Net APR better. Assume you provide liquidity worth $10,000 and the Token Net APR displayed is 10% based on a hypothetical FDV of $100m. If you believe that the FDV might actually reach $200m, you can multiply the 10% by 2, assuming an APR of 20%. In this scenario, you could potentially earn a $2,000 in a year ($10,000 * 20%) equivalent in tokens. However, keep in mind that these numbers are hypothetical and actual results may vary.

We want to remind you that the hypothetical Fully Diluted Valuation of the protocol may be updated, so we encourage you to regularly refer back to this section if you want to make any assumptions around Swaap Tokens APR.

Disclaimer​

The information provided in this documentation section pertaining to Swaap Protocol (the “Project”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this documentation should not be relied upon as advice to buy or sell or hold such securities or as an offer to sell such securities. This documentation does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. The Project and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and the Project expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. The Project reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this documentation supersedes any prior document concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither the Project nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this documentation by you or any of your representatives or for omissions from the information in this documentation. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this documentation.