Is Gardening Worth the Effort? A DeFi Kingdoms Deep-Dive
1/ Heros in DeFi Kingdoms can earn Jewel tokens by performing quests. Gardening is one such quest.
2/ The amount of earned Jewel per quest run is governed by the following formula:
earnRate (per tick) = launchBonus*(rewardPool*poolAllocation*LPowned*(0.1+ (WIS+VIT)/1222.22+(GrdSkl)/244.44))/(43,200-(7200*geneBonus))
3/ Let’s compute this value with a concrete example in the JEWEL-ONE LP. For this we will evaluate each parameter separately:
4/ launchBonus: A multiplier applied at launch that will start at 5 and decrease by 0.5 every two weeks until the value is 1.0. We will set this to 5.
5/ rewardPool: This is the balance of the quest pool wallet which is located at: 0x5ca5bcd91929c7152ca577e8c001c9b5a185f568
rewardPool = 67,149,291
6/ poolAllocation: Equals the % of the reward pool the LP is allocated. For the JEWEL-ONE LP: poolAllocation = 49.56%
7a/ LPowned: Equals the % of the LP that the player owns. This can be found by visiting the Druid in the Marketplace. Unfortunately the Druid gives a truncated number. Fortunately we can find the actual number by visiting the JEWEL LP address: https://explorer.harmony.one/address/0xeb579ddcd49a7beb3f205c9ff6006bb6390f138f
7b/ LPowned = 392.5 / 67,149,291 = 0.0006%. We can also calculate the value of LPowned by inspecting the JEWEL LP address further…
7c/ The JEWEL LP holds 11,736,643 JEWEL and 432,021,145 ONE tokens. At current market rates this equals a total value of $152,423,415 which gives us a value of $152,423,415*0.0006% = $890.
8/ WIS, VIT, GrdSkl, geneBonus: all these are specific to the hero that is gardening. In our case, WIS = 14, VIT = 10, GrdSkl = 8.3, geneBonus = 1 (because our hero is a gardener)
9/ We finally have everything we need to compute: earnRate (per tick) = 5*(67,149,291*0.4956*0.000006*(0.1+ (14+10)/1222.22+(8)/244.44))/(43,200-(7200*1)) = 0.000845
10/ Multiplying the earnRate by the current price of JEWEL ($6.5) will give us: earn$ (per tick) = $0.0055
11/ Since our hero has a stamina of 26 it can garden for 26 ticks per run to earn 26*0.0055 = $0.143 per run.
12/ Our hero can garden at a pace of 1 tick per 10 minutes. So the earned amount per minute is: earn$ (per min) = $0.143 / 260 = $0.00055. If the hero continuously gardened it would earn: earn$ (per year) = $0.00055*60*24*365 = $289
13/ Our hero requires 8 hours to rest before it can do another run so effectively we can run only 2 full cycles per day equal to 260*2 = 520 minutes which gives: earn$ (per day) = $0.00055*520 = $0.286 or $104 per year.
14/ APR: We invested $891 in the LP and our hero earns us $104 a year. So our APR is about 11.7% = 104 / 891.
Is this APR worth it? You be the judge.
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