How v3 APR is calculated

In V3 Liquidity and Farms, with the new non-fungible liquidity and customizable price range ability. Each LP position will have its own LP fee and SELF farming APR.

The total APR is combined by the LP fee APR and SELF reward APR

LP fee

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

feenext7d=feeinΞ”LLin+Ξ”Lfee_{next7d} = fee_{in} \frac{\Delta{L}}{L_{in} + \Delta{L}}
  • feein fee_{in} : Fee amount accrued in the user specified price range in last 7 days

  • Lin L_{in} : Current liquidity in the user specified price range

  • Ξ”L \Delta{L} : Liquidity user want to add to the price range

Fee in range

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

feein=ftV7dTinT7d fee_{in} = f_tV_{7d}\frac{T_{in}}{T_{7d}}

  • ft f_t : Fee tier

  • V7d V_{7d} : Total trading volume of last 7 days

  • Tin T_{in} : Duration, measured in seconds, of prices staying within the price range in the past 7 days

  • T7d T_{7d} : 7 days measured in seconds


Pool Allocation

The total reward SELF per second in MC v3 using upkeep and can be derived by latestPeriodSelfPerSecond

selfPerSecond = lastestPeriodSelfPerSecond / 1e12 / 1e18

In each pool, we can use poolInfo to get the poolWeight by dividing poolInfo.allocPoint / totalAllocPoint


Global APR calculated using the total amount of active & staked liquidity with the pool SELF reward emissions.

APR (global) = (selfPerSecond * 31536000) / (totalAllocPoint / pool.allocPoint) * 100 * selfUSD / totalStakedLiquidityUSD

totalStakedLiquidityUSD represents the current pool active staked liquidity in USD, composing by all the position ticks in range staked in MasterChef v3.

Position SELF APR

APRs for individual positions may vary depend on their price range settings.

ARPp=USDrUSDpLpLlmARP_p = {\frac{USD_{r}}{USD_{p}}} {\frac{L_{p}}{L_{lm}}}
  • USDrUSD_r: SELF reward earn USD per year in pool

  • USDpUSD_p: Total USD value in position

  • Lp L_{p} : Position liquidity

  • Llm L_{lm} : Total staking liquidity which tracked by LMPool

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