| Scenario | Min Fee ROI | Median Fee ROI | Max Fee ROI |
|---|---|---|---|
| 1 loan/day | 0.37% | 18.25% | 36.5% |
| 10 loans/day | 1.83% | 91.25% | 182.5% |
| 100 loans/day | 3.65% | 182.5% | 365% |
The APY for liquidity providers depends on flash loan adoption and fee governance decisions:
Conservative Estimate (1-5 loans/day, low fees): 1-10% APY
- Suitable for risk-averse investors seeking steady passive income
- Comparable to traditional DeFi lending protocols
- Lower volatility but modest returns
Moderate Estimate (5-25 loans/day, median fees): 10-50% APY
- Balanced risk/reward profile for typical DeFi participants
- Requires active governance participation for optimal fee setting
- Competitive with established DeFi yield farming strategies
Aggressive Estimate (25+ loans/day, higher fees): 50-200%+ APY
- High-growth scenario with significant MEV/arbitrage adoption
- Requires active flash loan ecosystem and optimal fee governance
- Similar to early-stage DeFi protocols with high utilization
- Flash loan volume and frequency
- LP fee rates (set by governance voting)
- Your percentage ownership of the pool
- Management fee percentage (1-5% of LP fees)
- Market demand for flash loans in the ecosystem
- Competition from other lending protocols
- APY projections are hypothetical and not guaranteed
- Smart contract risks (unaudited code)
- Governance risks (fee rate decisions)
- Liquidity risks (withdrawal limitations)
- Market risks (ETH price volatility affects USD calculations)
- Revenue is proportional to your share of the pool
- Fees are set by LP governance (democratic voting by share weight)
- Management fee (1-5% of LP fee) goes to protocol, rest to LPs
- Entry/exit fees (100 wei each) provide additional dust accumulation
- Virtual shares dilution affects small deposits more than large ones