5 Warwick Pl Liquidity Pool Case Study
Jerry Chu
In this case study, we dive deep into the performance metrics of the recently spun-down liquidity pool for 5 Warwick Pl, Palm Coast, FL 32164. Let's analyze the data to better understand the dynamics, returns, and insights from this liquidity event.
Key Metrics
Liquidity Pool Duration: 300 Days
Average Limit Order Swap Price (2025 YTD): $50.00
Average Market Order Buys Price (2025 YTD): $47.47
Average Market Order Sells Price (2025 YTD): $46.18
Actual Token Redemption Price: $57.00
Cumulative Staking Totals
- Total USDC Staked: $3,485.67
- Total Base Tokens Staked: 282 Tokens
Staked Balances at Spin Down
- USDC at Spin Down: $2,564.49
- Base Tokens at Spin Down: 30 Tokens
Total Liquidity Provider Fees Earned
- Quote Side Fees: $389.47
- Base Side Fees: $419.41
Returns Analysis
The returns calculated at the spin-down event are as follows:
Quote-side ROI: 15.18%
Base-side ROI: 31.11%
Note: The base ROI calculation utilized an oracle price of $44.94 per base token at spin-down for an approximate valuation.
Annualized Returns
Considering the pool duration (273 days), annualized returns (without compounding) are:
- Quote-side Annualized ROI: 20.29%
- Base-side Annualized ROI: 41.59%
Surplus and Final Balances
At spin-down, a surplus of 2 property tokens remained. With a redemption price of $57 per token, the surplus tokens were valued at $114.00.
- Final Quote Balance: $2,136.74
- Additional Value from Surplus Tokens: $114.00
- Total Final Quote Value: $2,250.74
This resulted in a net loss of an additional $313.75 over the original staked amount ($2,564.49), excluding any penalties paid.
The adjusted USDC return factoring the surplus tokens and net principal loss of the stakers is 3.08%, translating to an annualized net return of approximately 4.11%, while the property side of the pool's net annualized return remains the same at 41.59%. If a user staked on both sides of the pool, then they would have seen a combined return from each side as their final net return.
Insights and Observations
- The pool generated positive returns for both quote and base token stakers.
- There was a very small surplus of property tokens that were left to benefit the USDC side of the pool at spun down.
- Annualized returns were phenomenal for users that staked in both sides or in the base side, especially considering minimal compounding. However, the USDC side of the pool saw a positive, but relatively weaker return when factoring in the opportunity cost of capital.
Conclusion
The liquidity pool for 5 Warwick Pl, Palm Coast, FL 32164 provided users who staked in both sides of the pool with a superb annual return of 45.7% without any compounding. This also does not factor in any rental income an investor may have received from the property itself as well as the premium above the original $50/token sale price received a redemption. It goes to show that the liquidity pools are just a financial tool that a user can leverage. When used correctly with the right timeframe in mind, it can greatly boost one's real estate investing returns, well above what is considered the industry norm or what is financially possible with traditional real estate investing.
