What happens to APY when the reward token's value drops?
I've been doing liquidity mining and have been wondering what the APY's relationship to the value of the reward token is.For example: Let's say I have a LP position of $1000 in ETH-USDC pool and stake the LP tokens for $QUICK rewards at 25% APY.What happens when the vale of $QUICK drops? Does the APY effectively drop due to the value of the rewards token dropping?
Ingrandisci immagine - Repost: What happens to APY when the reward token's value drops? (from Reddit.com)
I've been doing liquidity mining and have been wondering what the APY's relationship to the value of the reward token is.For example: Let's say I have a LP position of $1000 in ETH-USDC pool and stake the LP tokens for $QUICK rewards at 25% APY.What happens when the vale of $QUICK drops? Does the APY effectively drop due to the value of the rewards token dropping?
Ingrandisci immagine - Repost: What happens to APY when the reward token's value drops? (from Reddit.com)
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