User initially holds 2 assets, ie. 10 ETH and 1000 AAVE. He has 2 options:
- invest - provide liquidity to Sushi pool and get SLP tokens
- later when user decides to close position he burns SLP tokens and gets back input tokens
- amounts of redeemed input tokens are different compared to initial amounts due to IL - user will get more of worse performing asset
- amounts of redeemed input tokens involve trading fees earned (0.25% in case of Sushiswap)
- user also gets reward tokens - Sushi and potentially additional reward token
- ie. ETH outperformed AAVE during the period of investment -> user redeems 7 ETH, 1200 AAVE + 300 SUSHI reward tokens
- HODL - user keeps holding his 2 assets, doesn't invest them anywhere
Over the investing period, we can calculate:
- Net profit/loss of 'invest' -> USD(7 ETH, 1200 AAVE + 300 SUSHI) - USD value at invest time of (10 ETH, 1000 AAVE)
- Net profit/loss of 'HODL' -> USD(10 ETH, 1000 AAVE) - USD value at invest time of (10 ETH, 1000 AAVE)
- ROI for both options
- Net profit/loss of 'invest' vs. 'HODL'
- ROI diff of 'invest' vs. 'HODL'
-
profitable/unprofitable positions (total, ratio)
- per pool
- per chain
- per protocol (Uni forks)
-
correlation between profitability and
- position duration
- position number of trades
- position size
- pool trading volumes
- pool TVL
- pool V/R ratio
- pool underlying assets
- pool underlying assets price divergence (IL)
-
IL vs trading fees vs reward tokens
- change in number of profitable positions if there were no rewards
- change in number of profitable positions if there was no trading fees
- impact of Sushi rewards vs additional token rewards