Dynamic AMM APY Calculation

In order to enhance transparency for our LPs concerning the APY associated with their deposited assets, we have decided to compute and exhibit three vital pieces of information on the UI: the base APY, the 1-year fee/TVL, and the LM rewards APY.

Base APY:

The base APY offered is subject to variation and is based on the prevailing trading activity and yield obtained from lending platforms. The calculation of APY is contingent on the increase in virtual price over a specific time period.

base APY=((Virtual Price 2Virtual Price 1)1 yeartimeframe1)×100\text{base APY} = \left(\left(\frac{\text{Virtual Price }2}{\text{Virtual Price }1}\right)^{\frac{\text{1 year}}{\text{timeframe}}}-1\right) \times 100

Virtual Price 2: Latest Virtual Price value

Virtual Price 1: Previous Virtual Price value in the last 24 Hours

Timeframe: Time difference between Virtual Price 1 and 2 (in seconds)

Note: The Virtual Price represents the value of your pool share and is determined by dividing the pool's total value by the number of LP tokens (VP = pool_value / LP token). The pool's value rises as a result of a swap fee being charged on each trade or when assets deposited in lending pools generate lending yield. This increase in pool value corresponds to a rise in the Virtual Price.

1 year Fee/TVL:

The ratio of the aggregate swap fees accrued over a 1-year period to the total liquidity available in the pool represents the efficiency metric that informs LPs which pool generates the most trading fees. This data empowers LPs with valuable insights into pool performance.

1 year fee/TVL=24 hour fee×365Total Liquidity of pool\text{1 year fee/TVL} = \frac{\text{24 hour fee} \times 365}{\text{Total Liquidity of pool}}

24 hour fee: Swap fee generated in the last 24 hour in $

Total Liquidity of pool: Total value of the assets stored in the AMM pool in $


This refers to the APR that is calculated based on the rewards provided by the team or partner protocols through Liquidity Mining (LM), such as ABR, LDO rewards, etc.

LM APR=((1+Farm Reward per dayFarm TVL)3651)×100\text{LM APR} = \left(\left(1 + \frac{\text{Farm Reward per day}}{\text{Farm TVL}}\right)^{365} - 1\right) \times 100

Farm reward per day: Token reward per day x token reward USD rate

Farm TVL: Pool LP staked/Pool LP supply x Pool TVL

Pool TVL: Pool token A x token A USD rate + Pool token B x token B USD rate

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