What does mining rate (per week) depend on when participating in LPs?

Hi, i was wondering what does mining rate ($UNI reward) depend on if you participate in providing liquidity in those ETH/DAI, ETH/USDT, ETH/USDC & ETH/WBTC pools, apart from your initial investment amount?
What would need to happen in order for reward rate per week (in $UNI) to climb up, once you have deposited your LP tokens? I can see the weekly reward is fluctuating for me, hence the question.


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Hi there Anythony,

The reward rate depends not just on how much liquidity you are providing, but also on how much others are providing at that moment. In liquidity pools fees are distributed among the liquidity providers, this is similar how the current initial liquidity mining pool works.

For example: you provided $1,000 liquidity and receive 0.001% of the pool rewards. The total amount of liquidity provided at the moment is $1,000,000.

If another $200,000 in liquidity were to be provided by other people, then the total liquidity pool would count $1,200,000. If volume didn’t go up and therefore fees didn’t go up, the same number of rewards would now need to be shared among $1,200,000 worth of liquidity providers instead of $1,000,000.

So, your % with your $1,000 would go down at that moment. If there were less liquidity provided in the pool, then your % would go up.

ETH Pools have seen mass increase in liquidity because of the UNI rewards - therefore your reward % has likely gone down.

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Thanks for your answe Marco.
Is it then safe to say that it makes the most sense if we deposit LP tokens into the pool with the lowest amount of deposits?

I’d say the one that has the most volume vs provided liquidity (if there’s less liquidity provided, but also less volume on the pair, then that would even the rewards out)

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can you elaborate? what do you mean less volume on the pair?

Maybe just read this: https://coinmarketcap.com/headlines/news/uniswap-liquidity-pool/

Rewards depend on the liquidity & volume.

The more volume, the more fees that are paid by traders on this pair.

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I appreciate the info, thanks man

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Thanks :pray: for the info

This had me thinking, in what ratio are UNI rewards being paid out when we compare volume and time. Meaning, if i understand correctly, UNI is being paid out to liquidity providers over time, even if there is no volume in the pool, or am i wrong?

So my question is, if one provides liquidity in a pool without any volume (no trades, just for the sake of calculation) what percentage of UNI is he gonna miss out due to no volume in the pool?

Please use the Discord channel for this: https://discord.gg/gZbNc4