Overview
Total Value Locked was flat for the week as most large cap assets saw muted volatility into year end. Fees collected for the week increased to $560k from last week’s $499k. Volume also increased to $160 million from last week’s $130 million.
Incentivized BAL Liquidity Mining
Yields for incentivized BAL pools saw a slight 2% bump over last week’s levels.
WBTC/ETH Balancer vs Sushi Update
Two weeks ago when I looked at this, Sushiswap’s farm was earning 5% more overall compared to balancer. Today that’s narrowed to less than 2% (factoring in 4.26% fee APY for Sushiswap’s WBTC/ETH pair). On a pure rewards basis, balancer is now ahead by ~0.8%. BAL rewards are paid weekly and can be compounded more effectively than SUSHI which is 2/3 vested for six months. It may not be worth it for LP’s to switch (yet) as prices can change quickly, but from a pure farming perspective balancer looks to be the more optimal play right now.
Degen Pools
The pools containing uniswap LP shares for CORE continue to be among the highest yielding pools on balancer. Though it is impossible to withdraw CORE uniswap liquidity, the LP shares can be traded on secondary markets. APY on these pools usually exceeds staking the actual LP shares, though you incur impermanent loss if the price of the LP shares declines.
Ecosystem
*This is not financial advice. APY’s are highly unstable and not guaranteed. Please do your own research to fully understand all the potential risks of providing liquidity.