❄️Igloo Icing

Igloo Icing allow users to earn EGG while supporting PenguinSwap by staking LP Tokens.

Check out our How to Use Igloo guide to get started with icing.

Igloo Icing can give better rewards than Seafood Pools, but it comes with a risk of Impermanent Loss. It’s not as scary as it sounds, but it is worth learning about the concept before you get started.

Reward calculations

Igloo Icing APR calculations include both:

• LP rewards APR earned through providing liquidity and;

• Igloo base rewards APR earned staking LP Tokens in the Igloo.

Why? Because when you stake your LP tokens in an Igloo to earn EGG, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!

So how do we calculate those figures?

Calculating Igloo Base Reward APR

The Igloo Base APR is calculated according to the farm multiplier and the total amount of liquidity in the farm -- this is the amount of EGG distributed to the Igloo.

Calculating LP Reward APR

On top of that, fellow penguins receive LP rewards for providing liquidity. Here's an example of calculating LP rewards:

In the UTG/USDT pair above, we see these values:

Liquidity: $100M Volume 24H: $30M Volume 7D: $210M

• Calculate yearly fees

  • Use the 24H volume to calculate the fee share of liquidity providers in the pool (based on the 0.17% trading fee structure): $30,000,000*0.17/100 = $51,000

  • Next, use that fee share to estimate the projected yearly fees earned by the pool (based on the current 24h volume): $51,000*365 = $18,615,000

• We can now use the yearly fees to calculate the LP rewards APR: That's yearly fees divided by liquidity: ($18,615,000/$100,000,000)*100 = 18.615% LP reward APR