FAQ & Risks

FAQ

Why are your returns higher than Raydium?

We display returns in APY, instead of APR, which takes into account of compounding (which we do for you) instead of Raydium or Orca's APR figures. Take note that APY figures work best over longer timeframes, and are estimates.

How often does Tulip auto-compound?

Tulip’s auto-compounding strategy runs every 10 minutes, and helps you achieve higher returns. The difference is especially noticeable on high APR pairs like ATLAS-RAY, with 136% APR on Raydium to 243% APY on Tulip. Note that this works effectively over a longer timeframe, and APY estimates are suitable for long term farmers.

Why am I not getting the displayed APY.

The rewards from yield farming (APY) is broken down into Trading Fees (default APY) + Farm Emissions (Default APR). The "Rewards" display does not include the trading fees, only the farm emissions, and thus are usually slightly below the total APY displayed. You will get the trading fees APY when you break the LP into the respective tokens again, while farm emissions are automatically sold into more LP for you.

We currently take 1.5% on any yield generated and the APY is before fees are deducted. Also, APY is also dependent on Total Value Locked (TVL), Token Price (Such as $RAY or $ORCA) and Slot Heights (blocktimes), so final rewards might differ.

What are my Rewards?

Other than the farm emissions, you also earn some trading fees paid by swappers! These are automatically compounded within the LP tokens, regardless of whether they’re staked on Tulip or Raydium. Unfortunately, there’s no easy way to view how much you have earned from fees for now.

Risks

Smart Contract Risks

All of Tulip Protocol's code is novel and experimental. Please use discretion when depositing funds. While we have been peer reviewed by the Solana Foundation and other developers, we are not liable for funds lost due to smart contract exploits.

Price Risk

Crypto-assets displayed on our site (e.g. SOL, RAY, SRM) are exposed to market fluctuations. Your capital might change due to price action and other external factors. Take note that price fluctuations also cause "Impermanent Loss" when dealing with Liquidity Pools (LPs).