[@defidotapp Season 2, at this rate, will end in 3 years;;]
Summary
1. The XP mining efficiency is poor, so people are not farming.
2. At the current pace, it will take 3 years to finish Season 2.
3. However, there seems to be a movement to accept community feedback.
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Season 2 started on 5/22, so about 70 days have passed, and currently, 8% of the 10B has been filled.
It's roughly filling about 1% every 10 days, so if the remaining 92% fills at the same rate, it would take about 920 days, right?
No one would want Season 2 to end in 3 years, would they??
I really hope that the feedback is reflected and the XP efficiency improves.
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Not long ago, I wrote about how poor the XP mining efficiency of the DeFi app is.
In the comments of that post, @0xtkyeo, the Korean community lead of the DeFi app, mentioned that they are accepting feedback.
I don't know if the feedback will be implemented immediately, but
"It seems that urgent measures are necessary."
Is mining XP actually a loss? @defidotapp
Summary
1. The efficiency of mining XP through Swap is 70% better than Perps.
2. However, the value of XP is lower than the cost of mining XP, so the efficiency doesn't add up.
3. Staking $HOME is also not very efficient (it would be profitable if the $HOME price remains stable for a year).
4. Defidotapp needs to improve XP mining efficiency!!
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Comparison of mining costs between Swap and Perps
1. Swap mining cost
- A fee of $2.11 occurs when swapping $10,000 -> 400 XP obtained.
- Cost per 1 XP mined = $0.00525.
2. Perps mining cost
- A fee of $9.81 occurs when trading $18,433.74 -> 1,100 XP obtained.
- Cost per 1 XP mined = $0.0089.
=> The mining cost for Perps is about 70% more expensive compared to Swap, but using Perps allows for hyper-liquid double farming.
3. What is the value of XP?
- A total of 10B XP is mined, with 1B of $HOME allocated (10:1).
- 1 XP = 0.1 $HOME (average including bonuses) = $0.0034.
=> Even mining XP through Swap is essentially a loss. It might be profitable if the $HOME price doubles?
The team must either improve XP mining efficiency or raise the $HOME price to more than double.
Otherwise, there’s no real reason to mine, except for the Yappers. (Yappers must accumulate XP to unlock Yapping rewards.)
What is going on here…?
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So, would staking $HOME be efficient?
1. Staking for 12 months effectively reduces the mining cost to about 1/3.
2. However, the trap is the risk of a decline in the $HOME price.
3. Assuming a conservative total loss of staked $HOME, to obtain 1440 XP:
- Cost for pure Swap = $7.56.
- Cost for staking and Swap = $10 (staking) + $2.52 (swap) = $12.52.
- Cost per 1 XP mined = $0.0087.
=> Staking incurs a 70% premium to mine points, but as long as the $HOME price doesn’t drop by half after 12 months, it would be profitable.
Oh, please improve XP mining efficiency... it’s almost been nerfed to 1/10 right now.
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