r/Stellar • u/Balls_Legend • 19d ago

Discussion yXLM yield now 1.6%?

Not sure what the huge drop over the last year means but it doesn't feel like something good. Anyone have any thoughts on why yield has dropped so low, so quickly?

16 Upvotes

84% Upvoted

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u/IceHand41 17d ago

The reduced yield is true. I would speculate that Ultra Stellar is less able to earn high yield so they had to reduce what they offer.

If you are interested in earning yield on the stellar network, check out AQUA, BLND, or PHO.

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u/Balls_Legend 17d ago

Thanks for the suggestions. I've looked at Aqua, I just cant wrap my head around the "pool" thing. I wish I could understand that whole concept. Every guide or info source I've encountered assumes you already know a lot, no beginners guides. If you know of one, I'd love to look at it.

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u/IceHand41 16d ago

There are many ways to make AQUA rewards, and most or all of them involve these pools or pairs. The pools are liquidity pools. When someone swaps XLM for AQUA, the trade can go through the liquidity (also called AMM) pool. The XLM/AQUA pair is one among many that can be voted into the rewards zone. Once a pair is rewarded (has to get 0.5% of the total votes), anyone who provides liquidity to that pair gets a portion of the rewards. You can also get rewarded for placing a limit order, for example to buy XLM with AQUA or vice versa. The rewards are in proportion to how much you deposit into the pool (you earn AMM rewards), or how large your order is and how close to the current price (you earn SDEX rewards).

The other way to earn AQUA rewards is by voting for certain pairs that have bribes. The voting on Aquarius is done with ICE, which you get by freezing (locking) your AQUA. If you freeze for 3 years or longer you'll get an 8x boost in your ICE votes, which start slowly 'melting' when they are closer than 3 years to unlock. Basically, you lock your AQUA to get upvoteICE, which you can vote for any pairs to get enough votes for rewards, or you can vote for certain pairs that pay you a daily AQUA bribe to vote for them.

Summary of ways to earn AQUA rewards: 1) AMM rewards by depositing two tokens into a rewarded pool like XLM/AQUA, AQUA/USDC, AQUA/BLND, etc. 2) place an order on the SDEX to buy XLM, BLND, etc. with AQUA, or any combination of a rewarded pair. 3) Buy AQUA, freeze it, use ICE to vote for bribed pairs.

If you use lobstr wallet they have a nice button to connect you right to the Aquarius Dashboard. Ask any questions you have. You can also delegate your votes to me or another of 9 delegates who will place your ICE votes for you, and try to earn a competitive bribe without you having to do much work. Other than lock your AQUA and delegate your votes. Check out IceHand at aqua.network/delegates

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u/dgman57 18d ago

Yea… it’s called regular market cycle. This isn’t anything new as all crypto is bearish at the moment so it’s nothing special or exclusive to XLM for it dropping 1%…

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u/Balls_Legend 18d ago

Maybe I wasn't clear. I was asking about the yield on yXLM, not the price. About a year ago, it was 4%, now 1.6% That's over 50% drop. Let's both talk about the same thing here, cool?

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u/neverleavingthewagon 16d ago

Love this response man lmao, stick it to emmmmm