During the initial phase of SODAX Pool, the team is targeting an estimated reward APR of roughly 5-15% for liquidity providers in the SODA/xSODA pool.
💡 The displayed APR is an estimate, not a guarantee. Your actual returns will depend on factors including the amount of liquidity in the pool, your selected price range, utility, and how long the trading price stays within your range.
How APR is Determined
Rewards during the initial phase are funded from legacy liquidity incentive funds migrated from the ICON Network. The accumulated funds are being distributed to maintain an estimated APR of roughly 5-15% for active liquidity providers.
Because SODAX Pool uses concentrated liquidity, the APR you experience will vary based on your specific position:
Tighter Ranges: Positions with narrower price ranges concentrate more capital around the active trading price, which can result in a higher share of rewards. However, these positions also carry a greater risk of the price moving out of range.
Wider Ranges: Broader positions remain active across a wider set of price conditions, but the rewards may be lower because the capital is spread across a larger area.
After the Initial Phase
As the initial fund is distributed and effective liquidity within the SODAX system grows, a judgement call will follow on if, and how, additional stimulus may be provided for the following phase to maintain an appealing reward rate.
🔍 APR is variable. The rate you earn will fluctuate based on the total amount of active liquidity, the distribution of positions across price ranges, and the reward schedule. Check the SODAX Pool interface for the latest estimated APR.
Need Help?
If you have any further questions about expected returns or need assistance, visit our Support Center for more articles and resources, or contact our support team via the button in the bottom right.