APR/ROI Calculator
Last updated
Last updated
In Liquidity, with the new non-fungible liquidity and customizable price range ability. Each LP position will have its own LP fee.
To make liquidity provisioning smoother and less challenging, the new automatic APR displays with a brand new ROI calculator are available to use whenever you are providing liquidity.
When you are providing liquidity, the automatic APR display reacts to your configuration changes and calculates the APR based on your settings.
For example, in most cases, if you tighten your price range settings, the APR goes up.
Please note:
For LP fee APRs:
The estimated amount of LP fee rewards vary based on the selected fee tier, fee rewards require manual claiming and compounding.
APR figures are calculated using historical trading volume, which is dependent on Subgraph and may be subject to indexing delays.
Numbers are calculated at the current rates and pool conditions, and they are subject to change based on various external variables. They are estimations provided for your convenience only, and by no means represent guaranteed returns.
You may find this APR display under:
“Add Liquidity” page - showing LP fee APR
Detail page of each of the existing liquidity position - showing LP fee APR
Whenever you see the automatic APR displays, you can click and bring up the ROI calculator. The ROI calculator has been designed with serval features to fit the needs for concentrated liquidity providing.
Let’s go through each of the sections together:
These three are the basic inputs, which are presented in the ROI calculator. They are there to define:
How many assets are provided to the liquidity position, in USD.
For how long those assets will be staked in the position.
How often you will be compounding rewards back to the position.
① Deposit Amount
You may manually input the amount in USD, or use the quick action buttons to quickly fill in $100, $1000 or the maximum amount allowed based on the token balance in your wallet.
② Stake Duration
You can select how long the assets are staked in the liquidity position by choosing between: 1 day, 7 days, 30 days, 1 year, and 5 years.
The number of return will be calculated based on your staking duration.
③ Compounding
You can select how often you will be harvesting the rewards generated by the position, and compounding them back to the position. You may choose a number between: 12 hours, 1 day, 7 days, and 30 days.
The number of returns and APY will be calculated based on your choice. If you have no plan to compound your position, uncheck the checkbox on the left.
LP fees has to be manually harvested and compounded.
④ History Price
This is a view-only section to reference the historical price movement of the selected pair.
You may reference the historical price movements in different timeframes, such as how much the price usually fluctuates and then come up with a suitable price range settings to balance between higher APR and lower risk of impermanent loss
MIN - minimum price MAX - maximum price AVG - average price CURRENT - current price
The price chart is only using data from the actual pair. The four price metrics represent the currently selected timeframe and will change based on the selection.
⑤ Price Range
Using this section, you may check how much liquidity has been deposited to different price ranges, and come up with and set the price range you are providing liquidity to.
You may find the distribution chart below the title. The larger the amount of liquidity, the higher the chart will be.
You can change your price range settings by:
Dragging the two handles on the chart to increase or describes the minimum and maximum price limit.
Using the space between two handles to shift the selected range.
Clicking the + and - button on the min and max price fields.
Clicking the numbers in the price fields and entering them manually.
If you want to navigate the distribution chart:
Use the plus and minus magnifier buttons to zoom in and out
Drag the X (bottom) axis to shift left and right
If you want to provide liquidity to the entire price range, click “Full Range”
⑥ Flip the price direction to view prices with different base
For some token pairs, it is easier and more intuitive to view prices with certain base tokens. For example, for FTM/USDC pair, most people will prefer to view prices in “how many USDC per FTM” instead of the other way around.
You can easily flip the price displays. Simply click the button following the “View prices in” to switch the base between two tokens in the pair.
⑦ Import and export (apply) your settings
The amount of assets you are depositing
The price range
The selected fee tier
When you open the ROI calculator in the “Add Liquidity” window, or by viewing an existing position, the following settings will be automatically imported so you don’t need to set them again.
You can expand the detail sections to see the rewards breakdown.
