Understanding Revert

tlopplot
FORGE

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When you provide liquidity to Forge via Revert Finance, you create a position. Each position includes a range of data points you need to understand:

Pooled Assets

The value in USD of the liquidity position. In the context of Forge or similar protocols, it refers to the amount of tokens you have provided to the liquidity pool.

APR (Annual Percentage Rate)

This is the annualized rate of returns given the current value of the underlying position assets including deposits, withdrawals, gas costs, and staking rewards at current prices.

Fee APR

The annualized rate of returns considering the accrued fees only. This does not account for divergence loss.

Pool PnL (Profit and Loss)

Pool PnL = value of current LP underlying tokens — value of tokens deposited (at current price) + value of tokens withdrawn (at current price)

Total PnL

Profit and loss for the position from fees accrued, price divergence, gas costs, and reward incentives.

Total PnL = value of current underlying tokens — value of tokens deposited (at current price) + value of tokens withdrawn (at current price) + pending rewards at current prices + claimed rewards at current price — gas costs for all deposit and withdrawal transactions at current ETH price.

Current Assets

The amount of underlying tokens corresponding to this LP position.

Invested Assets

The sum of all assets invested in the position.

Withdrawn Assets

The sum of all assets withdrawn out of the position.

Diffs

The difference between the assets invested, subtracting the assets withdrawn, and the current assets in the LP position.

diffs = current assets — invested assets + withdrawn assets

Unclaimed Rewards

The sum of all detected unclaimed staking reward assets for the account and pool.

Claimed Rewards

The sum of all detected claimed staking reward assets for the account and pool.

Reserves

USD value of the underlying token reserves for the pool.

Volume

USD value of the traded volume for the pool.

Price Divergence

The running difference between the changes in prices (as percentages) for the underlying assets against the prices 30 days ago. Price divergences between a pair of assets can result in losses for liquidity providers.

Price Divergence = abs(token0_price_change_pct — token1_price_change_pt)

Position Age

The amount of time (in days) that has passed since the position was first created.

Auto-compounding

Revert Finance provides an auto-compounding feature for Forge. This functionality helps to automatically reinvest your rewards back into your position, thus helping you to earn compound interest. The process of auto-compounding includes steps such as collecting fees, checking the amount of token0/token1 required to maximize the amount of liquidity added to the position, performing the swap, and adding the swapped amounts as liquidity to the position.

Roles in the protocol

There are three main roles in the Revert protocol: position owners, compoundors, and the contract deployer. Position owners are those who add their Forge positions to the Compounder contract and benefit from auto-compounding. Compoundors are those who participate in auto-compounding positions and are rewarded with part of the compounded fees. The contract deployer is controlled by Revert and can modify certain configuration parameters.

Helpful Links

https://docs.revert.finance/

https://medium.com/blockchain-biz/why-you-should-use-revert-finance-prior-to-entering-any-lp-on-uniswap-a4779a1a7c49

Quick walkthrough https://www.youtube.com/watch?v=4KGWVUCVrW0

In-Depth walkthrough https://www.youtube.com/watch?v=O61msPF5MYw

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tlopplot
FORGE
Editor for

Evmos enthusiast, moderation, and support. Opinions are all my own.