The APYs are and always will be volatile. We never communicated they are fixed for the entire year.
11 Mar 2022, 19:41
The APYs are and always will be volatile. We never communicated they are fixed for the entire year. While we are doing our best to keep them competitive and always will keep them as high as possible they do rely on several factors, among which the most important ones are overall market fluctuations and then more specifically Chainge users' behaviour. The APYs, aside from the obvious purpose of giving out rewards to those who provide liquidity also have the purpose of encouraging users to further use our app's tools in order to maximize their wealth's potential and improve their financial life. Thus, if a user just wants a sure stable income on their assets they can Time-frame their assets and then stop at that. Things are very clear in this case and there's no APY volatily involved (except the one related to the underlying assets price fluctuations). What you see is what you get as you receive your rewards instantaneously, which will automatically turn to spot assets at the end of the year.
2. If we go further into the Liquidity pools story, then things are more complex. There is some level of risk both with spot liquidity pooling and futures liquidity pooling. However, the latter does guarantee no impermanent loss at the end of the year so the user is 100% sure that he will have a profit at the end of the year. But that's also dependable on what you think the pooled asset will be worth at the end of the year and if it will drop or raise in value. On the opposite side, spot pools have a bigger APY balanced out by a bigger risk. That of impermanent loss. Either way, any user who adds liquidity in LPs has to use their head and their own predictions in order to make that decision for himself. He can stick with low-risk solutions or higher risk solutions. At the same time they can put a bit of work into it an overcome the risks by using the Options DEX (writing and selling options for example or adding the options written with TF assets to other pools - a succesful example here is this user who made the effort of understanding the opportunities behind our app's tools to maximize his profit:
But getting back to your question, we did not choose to lower those rewards, the market and users' behaviour has determined the fall of the APYs in those specific pools as they were no longer sustainable and we had to prevent inflation.
While it may not seem that way atm, the decision of lowering the APYs is in the best intrest of our users in the long run.