Reward Stats On Thorchain Pools

    In this analysis we are going to dig into reward mechanisms of Thorchain for nodes and liquidity providers. Our guiding light into this deep ocean is a straight forward question: Breakdown the yield from block rewards vs swap fees, both total and by pool. Show how the proportions have changed over time since the network started.

    Thorchain reward mechanism consists of two main source: Block rewards from reserve pool & transaction fees. these reward are being paid to two group of users: nodes and LPs. Rewards are being distributed in such a manner that maintain security and stability of system, how? by a mechanism that incentivize people to spend their RUNE 50-50 on pools and nodes. the one who goes beyond 50 percent, acquires less reward. In the first chart we are seeing the stats of 4 different variable and this is the approximate equilibrium:

    Block Rewards + Liquidity Fee = Bonding earning + Liquidity earning

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    Although block rewards are increasing but this is not what it supposed to be in the future. the plan is that in some years later, fees are the only source of reward in thorchain. Now let's take a look at swap fee volume:

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    Collected Fees are increasing overall and this trend expected to continue much further. but since Fee mechanism of Thorchain is not solely based on RUNE, we should expect to see a lot of difference in Fees for each pool. In chart Below i listed top 10 Pools in Fees for each month since the beginning of Thorchain and naturally ETH Pools are dominating every month.

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    BUSD, BTC and recently UST are Other Pools that can come close to ETH every now and then.