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3: Liquidity mining and DEX's business model MQFswap is a DEX using liquidity mining incentives for the launch of its governance token MQF. We consider
3: Liquidity mining and DEX's business model MQFswap is a DEX using liquidity mining incentives for the launch of its governance token MQF. We consider a simple case of MQFswap with its previous constant product AMM. Bob is a liquidity provider for MQFswap ETH-USDC pool. Suppose the total liquidity for the pool is 1000 ETH and 2,000,000 USDC currently, and Bob owns 2% of the pool. The liquidity mining reward for this pool is 1000 MQF per day. We suppose that the percentage owned by Bob of the liquidity pool will not change. How many MQF can Bob earn per day? Answer: If the current price of MQF is 8 USDC. What is the current APY (i.e., Annual Percentage Yield) through farming MQF? (We don't consider the compound interest in the APY calculation)
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