Scope: Clarify APYs of Badger Setts
Objective: Increase accuracy of APY’s displayed about Badger Setts on the app by showing a range of returns depending on boost, and adding text that explains how the boost is determined, so that end-users can accurately gauge what APY they will receive.
At present, Badger is overstating the effective APY on its setts by 3x for most investors. For example, the Ren pool shows an APY of 60%.
The actual return most investors see is closer to 20%. If you hold for 8 weeks, you get the displayed APY but that is not stated anywhere on the app. This misleads investors and **undermines trust **in Badger.
The principle behind this proposal: Investor returns should be absolutely clear and never overstated.
If you look at Curve, they show a range of returns. For example, for 3Pool, you see returns from: 17 → 42%. They do not state only 42% (the high point).
The Curve range depends on boost; same too with Badger. Currently, Badger’s is by time (8 weeks and you get 3x boost), soon it will be by amount of native assets (BIP 24 - BADGER BOOST (Multiplier Replacement)). In either case, displaying the Range is far more appropriate.
Proposal 1. Display APY as a Range
The proposal is to display a range of returns for each Sett, based on the boost level (now that will be based on time, later it will be based on Badger boost). This is as opposed to showing only the high-end of the range today (which does not apply to many users).
Proposal 2. Explain how Boost Impacts Realized APY within the Range
The boost should be explained somewhere on the page so people know where on the range they will fall. It could say something like:
“The actual return depends on your boost level. Boost levels are determined by length of liquidity provisioning. The lower end of the APY range is if you have no boost, the high end for full boost. If you have provided liquidity for 8 weeks, you have full boost.”
This would be updated when we have Badger Boost, whenever that becomes available.
Proposal 2a. Put Explanation in Mouse-Over Box
One possible implementation is to display this information in the mouse-over where today the breakdowns of the returns are shown to the user.
Proposal 2b. Put Explanation Directly on App page
Another implementation option is to explain the range and boost above-the-fold on the main app page.
Either 2a or 2b can be implemented or both, or neither. If you have a better idea on how and/or where to put the explanation, post it.
Support 2a (in mouse-over box)
Support 2b (directly on the App page)
Support both 2a and 2b
Do not Support