Protocols / project information provided by Unified

Every protocol / project essentially has total value locked (TVL) in the form of cryptocurrency assets staked on the protocol / project.

DefiLlama provides a high-level overview of TVLs by protocol / project.

  • Each protocol / project may have multiple liquidity pools / vaults within it.

In general, users stake cryptocurrency assets into liquidity pools / vaults, and expect to generate a return in the form of rewards or emissions.

When users stake assets into liquidity pools / vaults, they receive a receipt for the deposit, often referred to as a Liquidity Provision (LP) token.

When rewards or emissions have a monetary value attached to them, this allows users to estimate the annual percentage return (APR) that they are receiving on that liquidity pool / vault.

  • The APR is a function of rewards / emissions (at current rate) over the total value of the liquidity pool / vault.

  • While rewards / emissions may follow a schedule in which it changes over time, by convention, APR is measured based on the current rate of rewards / emissions.

VFAT provides a tool for users to view liquidity pools / vaults for many protocols / projects (but not exhaustive).

The most useful items of information for users are in the following table.

InformationWhy is this information useful?

What is the current market value of the user's LP tokens staked in that liquidity pool / vault?

This is based on the market value of the LP tokens staked in the liquidity pool / vault.

This is actually based on the number of LP tokens staked by the user in the liquidity pool / vault. However, the actual number of LP tokens is superfluous to the actual market value of the LP tokens.

What is the APR on the liquidity pool / vault?

This is based on the value of the rewards / emissions of the liquidity pool / vault relative to the total market value of the LP tokens staked in the liquidity pool / vault.

Generally, total liquidity pool / vault APR = user APR, since the user's APR is not differentiated from all other users' APR.

What is the TVL of that particular liquidity pool / vault? What is the user's share of the TVL of that particular liquidity pool / vault?

These 2 measures are usually placed together, because they indicate a user's exposure risk to a protocol / project that may have very little adoption.

For example, a liquidity pool / vault may have high APR, but it could be due to low amount of total deposits by all users into that liquidity pool / vault. In this case, the high APR could signify that either users have been fleeing that liquidity pool / vault, or it could be a temporarily high APR because that liquidity pool / vault has not received much deposits yet. If a user deposits into this liquidity pool / vault, that APR may quickly disappear as more adoption takes place.

As another example, if a user has a high percentage share of that vault, then that user carries a large exposure to that vault. This may be relevant in case a user wants to manage their exposure relative to others. The more risk is shared with others, there may be more eyes on that protocol / project to monitor it for incidences such as smart contract exploits.

What is the total amount of the user's unclaimed rewards / emissions in that liquidity pool / vault?

This tells a user if there is a sufficient amount of rewards / emissions for them to claim (relative to the gas costs incurred in claiming them).

The above 4 information items represent the information that each user should have on a particular liquidity pool / vault that they have participated in. A user should not see liquidity pools / vaults that they have not participated in (as it is superfluous information).

Sometimes protocol / project front-ends fail. VFAT interacts directly with smart contracts and therefore provides 3 useful tools in addition to information:

  • Users can stake directly into liquidity pools / vaults.

  • Users can unstake directly from liquidity pools / vaults. This is extremely useful when there is a critical issue involving liquidity pools / vaults and the front end is not available.

  • Users can claim unclaimed rewards / emissions directly from liquidity pools / vaults.

This is possible because VFAT is based on users logging in via e.g. Metamask for a single address.

Last updated