# Payoff

## What does a typical 80-20 payoff look like?

In most cases, the payoff is equivalent to holding the yield-generating external LP tokens **and** getting UNI v2 exposure on the full value of those tokens. This payoff essentially breaks down into three cases:

**Case 1:**ETH price increases 50%**Case 2:**ETH price stays the same**Case 3:**ETH price decreases 50%

For each case below, assume that:

**Initial Capital**= $10,000 (b/w yETH + yUSDC)**yETH**= 4% APY**yUSDC**= 8% APY**Rage LP Yield**= 20% APY**UNI v2 LP Yield**= 15% APY**Time Period**= 6 Months

### Case 1: ETH increases 50% 📈

In this case $10,000 invested in the 80-20 vault becomes **$13,546 **vs UNI v2's **$12,971**, a 9.07% higher APY.

We calculate this using the following Python code snippet. For more details, check out the full code on our GitHub.

### Case 2: ETH stays the same 🦀

Using the same code as above, the $10,000 becomes **$11,249** in Rage vs **$10,723** in UNI v2, a 10.05% higher APY and a **total Rage APY of 26.54%.**

### Case 3: ETH decreases 50% 🐻

In this case, the $10,000 becomes around **$8,271** in Rage vs **$7,794** in UNI v2, a 12.95% higher APY.

### Key Takeaways

The above estimates show the 80-20 strategy **in the general case** with standard yield-generating collateral. **It performs** **strictly better than UNI v2**. However, many of our 80-20 Vaults take more exotic yield-generating collateral with varying risk profiles.

For risk analysis on specifically the 80-20 Curve Tri-Crypto Vault, check out Curve Tri-Crypto .