Today I would like to introduce you to a new community project: DeFiChain Einstein. This is a new tool developed by a group of community members to help DeFiChain investors with their investment decision.
The main functionality of DeFiChain Einstein is the calculation of the Impermanent Loss impact on the return of liquidity mining investments.
For this purpose, DeFiChain Einstein provides a tool which, based on
- the selected liquidity pool,
- the selected investment strategy (currently in beta),
- predicted future prices,
- and the own time horizon,
calculates the following information:
- Impermanent Los
- Yield with Liquidity Mining
- Return without liquidity mining
For this, DeFiChain Einstein uses the Ocean API to calculate current prices of tokens as well as the current APR (reward + commission).
According to the official roadmap of DeFiChain Einstein, the tool will be continuously developed and there will be many new functionalities in the next weeks/months.
- Compounding / Reinvestment (currently in beta)
- Inclusion of reducing block rewards (currently in beta)
- Choose between Oracle and DEX prices
- Comparison with Staking Rewards
- Comparison of different investment strategies
- Comparison with different vault strategies (e.g. via vault maxi)
More information on the roadmap is made available by the team: Roadmap
DeFiChain Einstein is very simple. Just follow the steps below:
2. Choose your liquidity pool
3. Enter your predicted future prices
4. Choose your time horizon
Et voilà, DeFiChain Einstein will calculate the rest for you and show you all the information.
1. APR (Current Annual Return of the Liquidity Pool)
2. Impermanent loss
3. Actual return (Actual Return)
4. Actual return without liquidity mining
Additionally you can enter your planned investment. Then DeFiChain Einstein will also calculate your actual return based on your investment.
The DeFiChain Einstein tool currently does not consider that the block rewards are regularly lowered, the DFI price fluctuates and it currently does not consider reinvestments. Therefore, you cannot be sure that the rewards will come in as indicated. It is therefore more of a guide or helper tool, as no one can predict future returns.