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=feeinΔLLin+ΔLfee_{next7d} = fee_{in} \frac{\Delta{L}}{L_{in} + \Delta{L}}feenext7d​=feein​Lin​+ΔLΔL​
​feein fee_{in} feein​
 : Fee amount accrued in the user specified price range in last 7 days
​Lin L_{in} Lin​
: Current liquidity in the user specified price range
​ΔL \Delta{L} ΔL
: Liquidity user want to add to the price range
Fee in range
For feein fee_{in} feein​
, 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}} feein​=ft​V7d​T7d​Tin​​
​
​ft f_t ft​
: Fee tier
​V7d V_{7d} V7d​
: Total trading volume of last 7 days
​Tin T_{in} Tin​
: Duration, measured in seconds, of prices staying within the price range in the past 7 days
​T7d T_{7d} T7d​
: 7 days measured in seconds
SELF APR
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 SELF APR
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}}} ARPp​=USDp​USDr​​Llm​Lp​​
​USDrUSD_rUSDr​
: SELF reward earn USD per year in pool
​USDpUSD_pUSDp​
: Total USD value in position
​Lp L_{p} Lp​
: Position liquidity
​Llm L_{lm} Llm​
: Total staking liquidity which tracked by LMPool
How to migrate
FAQ
Last modified 5mo ago