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Sherlock Protocol | Illustrative Investor APY Calculator
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($USD = $USDC)
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How to use this Illustrative Investor APY Calculator
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We appreciate your interest in Sherlock's March 2022 Special Liquidity Event, which will go live on March 7th, and last for 5 days. The target raise is 100M $USDC, used to bootstrap Sherlock's staking pool and Sherlock's on-chain treasury. Please read Sherlock's Mirror article, "Special Liquidity Event Details", for a detailed breakdown of the raise.
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Special Liquidity Event Details Link
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Below you'll find an Illustrative Investor APY Calculator, which will help provide a view into what your annualized yield may look like on your investment, given a set of various assumptions. The calculator is designed so that you only need to change the hardcoded assumptions highlighted in yellow based on your desired assumptions for our business.
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**Disclaimer:**
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Sherlock disclaims any liability arising from the use of the Illustrative Investor APY Calculator and its contents. The Illustrative Investor APY Calculator is provided for illustrative purposes only, it does not take personal circumstances into consideration and the presented results are not guaranteed to be accurate. The presented results should not be taken as professional advice, or relied upon as the sole basis for making important decisions.
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Illustrative Investor APY
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Sherlock Comments
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( + )
Contribution to Liquidity Pool
 - Manually adjust Cell F24 to reflect your desired investment size. Sherlock's March 2022 fundraise allocates 90% of your investment to Sherlock's Liquidity Pool, which is locked for 6 months and used to write coverage. 10% of your investment will be allocated to operational funds.
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( + )
Contribution to Sherlock Operations
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( = )
Total Amount Invested
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( / )Total Fundraise$100,000,000
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( = )
% of Total Fundraise
 -
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( x )
SHER tokens distributed in March '22 Fundraise
10,000,000
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( = )
SHER Token Rewards Received
 -
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( / )
Total SHER Token Supply
100,000,000
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( = )
% Ownership in Sherlock
 -
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( x )
Sherlock Fully Diluted Market Cap
 -
<< Manually input the illustrative fully diluted market capitalization you would like to assign to Sherlock
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( = )
Implied Value of SHER Tokens
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( + )
Protocol Premium Payments to Liquidity Providers
 -
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( + )
Aave USDC Yield Strategy
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( = )
Total APY($) to Investor
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% APY to Investor -
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% Return on investment
n.a.
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xMetricsx
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Annualized Yield Contribution
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( + )
SHER Token Rewards
n.a.
<< Annualized figure; Sherlock's March 2022 Special Liquidity Event has a capital lockup of 6 months
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( + )
Protocol Premium Payments to Liquidity Providers
n.a.
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( + )
Aave USDC Yield Strategy
n.a.
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( = )
Total Annualized Yield
 -
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Implied Price per SHER Token
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Sherlock Fully Diluted Market Cap
 -
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( / )
Total SHER Token Supply
100,000,000
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( = )
Implied Price per SHER Token
 -
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Capital Lockup (years)
0.50
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Capital Lockup (months)
6 months
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Fundraise Details (USDC)
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Liquidity Pool Capital
$90,000,000
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% of total90.0% << For every $1 invested, $0.90 is allocated to Sherlock's liquidity pool and locked for 6 months; At expiry, all SHER rewards will be redeemable, and the original $0.90 can be re-staked or withdrawn
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( + )Operational Capital$10,000,000
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% of total10.0%
<< For every $1 invested, $0.10 is allocated to Sherlock's operational funds
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( = )Total Fundraise$100,000,000
<< Sherlock's target amount for the March 2022 Special Liquidity Event is 100M $USDC
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Fundraise Details (SHER Token Rewards)
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Total SHER Token Supply
100,000,000
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SHER tokens distributed in March '22 Fundraise
10,000,000
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% of total supply10.0%
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Sherlock Business Assumptions
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Total Liquidity Pool - Post Fundraise
$90,000,000
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Total Coverage Written
$135,000,000 << Sherlock expects to write coverage in excess of its liquidity pool. Sherlock is hyper-focused on managing risk to ensure that the business can fulfill its obligations to protocols we cover
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Average Leverage on Liquidity Pool
1.5x
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Coverage Limit$30,000,000
<< No coverage amount can be written for greater than 1/3 of the total Liquidity Pool
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Average Premium % (annual)
2.00%
<< Average pricing ranges from 1.5% - 4% based on the findings of Sherlock's critical vulnerability analysis
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Protocol Premium Payment Allocation to LPs
80.0%
<< Premiums are paid by covered protocols in USDC, which are then passed on pro-rata to stakers
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Protocol Premium Payment Allocation to Security Team
20.0%
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Current Aave USDC Yield (2/22)
1.71%<< USDC in Sherlock's liquidity pool is diligently managed to earn a near 'risk-free' rate of return; In the future, Sherlock envisions deploying capital in additional yield generating strategies
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xYield Generationx
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Protocol Premium Yields
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Total Coverage Written
$135,000,000
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( x )
Average Premium % (annual)
2.0%
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( x )
Protocol Premium Payment Allocation to LPs
80.0%
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( = )
Protocol Premium Payments to Liquidity Providers
$2,160,000
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% APY2.4%
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Liquidity Pool Yield Strategy
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Total Liquidity Pool - Post Fundraise
$90,000,000
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( x )
Aave USDC Yield Strategy
1.7%
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( = )
Protocol Premium Payments to LPs
$1,539,000
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% APY1.7%
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