Yield Maximisation Sushiswap

    On Sushiswap there are a number of ways to benefit from yield, a form of passive income often seen as a longer term investment strategy. Sushiswap offers investors the opportunity to benefit from rewards for offering liquidity to pairs swapped on the platform, we will look at the most profitable option for doing this.

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    With 1000 sushi tokens to use I would have a total of 3120 dollars to invest in the ecosystem. At the moment of writing Synthetix and ETH offer a return of 52.94% annualised, this would be a return of 1651$ on the initial 3120$ invested not accounting for gas fees and transaction fees. However, in order to make the returns, we would need to swap Sushi to both Sythetix and ETH in equal amounts, costing gas fees and a small liquidity fee to those already providing liquidity.

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    In order to benefit from the yield strategy Sushi will need to be swapped into ETH, 0.551996 of it be exact which at the time of writing is worth $1509 dollars. It's important to remember that the price fluctuation of ETH & Synthetix can have an impact on returns due to impermanent loss, the bigger a change in value the higher the risk. Take note of the fluctuations in the price of ETH in the chart above.

    In order to make this swap, we would take $20 of value from our total amount of Sushi for gas fees and the liquidity fee. The gas is paid in ETH.

    Below is the liquidity pool panel used for adding liquidity to Sushiswap.

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    With 322 Synthetix tokens we would have a token value matching the same value held in ETH, the same fee would be applied for the gas and liquidity fee meaning the total value held from our original total of 3120 would be 3080 after the two swaps. The last part of the process would be putting the tokens into the liquidity pool to benefit from the yield. This would cost a further gas fee of 20$, meaning the 52.94% return of the adjusted total to $3060 would be:

    $1619

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