How APR is calculated

In Liquidity, with the non-fungible liquidity and customizable price range ability. Each LP position will have its own LP fee.

The total APR is combined by the LP fee APR.

Theoretically speaking, given a price range and liquidity user about to add, we can estimate the expected future 7 days fee as following

fee_{next7d} = fee_{in} \frac{\Delta{L}}{L_{in} + \Delta{L}}

$fee_{in}$ : Fee amount accrued in the user specified price range in last 7 days
$L_{in}$ : Current liquidity in the user specified price range
$\Delta{L}$ : Liquidity user want to add to the price range

For $fee_{in}$ , we use the historical trading volume data, fee tier and historical price data to estimate the price in range

$fee_{in} = f_tV_{7d}\frac{T_{in}}{T_{7d}}$

$f_t$ : Fee tier
$V_{7d}$ : Total trading volume of last 7 days
$T_{in}$ : Duration, measured in seconds, of prices staying within the price range in the past 7 days
$T_{7d}$ : 7 days measured in seconds

Last updated 1 year ago

In Liquidity, with the non-fungible liquidity and customizable price range ability. Each LP position will have its own LP fee.

The total APR is combined by the LP fee APR.

Theoretically speaking, given a price range and liquidity user about to add, we can estimate the expected future 7 days fee as following

fee_{next7d} = fee_{in} \frac{\Delta{L}}{L_{in} + \Delta{L}}

$fee_{in}$ : Fee amount accrued in the user specified price range in last 7 days
$L_{in}$ : Current liquidity in the user specified price range
$\Delta{L}$ : Liquidity user want to add to the price range

For $fee_{in}$ , we use the historical trading volume data, fee tier and historical price data to estimate the price in range

$fee_{in} = f_tV_{7d}\frac{T_{in}}{T_{7d}}$

$f_t$ : Fee tier
$V_{7d}$ : Total trading volume of last 7 days
$T_{in}$ : Duration, measured in seconds, of prices staying within the price range in the past 7 days
$T_{7d}$ : 7 days measured in seconds

Last updated 1 year ago