Currently, the APY % displayed in each of the asset pools are not inclusive of any IDLE distributions earned. Instead, they are shown underneath the APY % as such:
plus 2,548.14 IDLE/day
Current issue: For new investors coming into IDLE, having it shown separately the way it is now is simply confusing (if you look through the Discord chats, you’ll see questions about the APY calculation every so often) and for those with a shorter attention span, there’s a chance they’d be deterred by the relatively ‘low’ APY % that IDLE offers compared to similar projects like Saffron.
As a result, we’re likely losing out on additional TLV from these investors who misunderstood the APY % or they simply didn’t have the timespan to look at it in more detail.
While I understand why it’s been shown this way in the past (more accurate + IDLE prices constantly change), I believe the benefits of displaying this as a single APY % is simply more advantageous altogether. From what I’ve seen of other projects as well, most, if not all other projects like to display it as a single APY % anyways so following the standard would make it easy for investors to compare APY %s between different projects.
Proposal - I propose tweaking the APY % display so that it’s inclusive of the IDLE token distribution. A simple way of doing this (as an example) is to take the daily IDLE distribution amount multiplied by the USD rate taken from a price index site like CoinGecko (better than Uniswap spot prices IMO since it’s more scaleable in the future if liquidity switches over to another exchange), multiplied by 365 days and divided by the total pool USD amount and added to the APY %.
Using the best yield USDC pool as an example, there’s 52.74M USDC in the pool with a 15.658% APY and 2,548.14 IDLE/day up for grabs.
We’d display the APY so that it shows:
2,548.14 IDLE * $11.71 (current spot prices per CoinGecko) * 365 days = $10,891,132.58
$10,891,132.58 divided by $52,740,000 total pool = 20.65% APY + 15.658% APY = ~36.308% APY
So in the example above, the APY % would simply show 36.308% APY as opposed to 15.658% + 2,548.14 IDLE/day.
Again, I understand the previous way of displaying APY is a more accurate/honest method of displaying it to investors, but I believe following standard practice here would lead to higher TLVs in the long run.
In the example above, investors would easily see that IDLE’s best yield USDC compound pool is outperforming Saffron’s DAI compound pool S tranche, which yields an estimated 23.3% APY (inclusive of both DAI & SFI distribution)