How To Calculate APR
As you can see on the farming page, there are two kinds of APR, Reward APR, and Fee APR. The APR value shown on the farm page is the sum of these two.
Let’s get a deep dive into each APR.
- This APR represents the percentage of the monthly reward that ArthSwap gives to the Liquidity Provider on an annualized basis. The amount of this reward is determined by the size of the multiplier allocated to each pool of monthly emissions released by ArthSwap and the Liquidity Provider's contribution within that pool.
- This is the annual percentage rate of a portion of the Swap Fee paid when a swap is made in the pool that is returned to the Liquidity Provider.
- Users pay “Liquidity Provider Fee” when they swap.