Reward calculations

How the APR percentages are calculated


Grow Room APR calculations include both:
  • LP rewards APR earned through providing liquidity
  • Farm base rewards APR earned staking LP Tokens in the Farm.
When LP tokens are staked in the Grow Room to earn $TRIP, liquidity is being provided to the liquidity pool. Therefore LP rewards are earned.

Calculating farm base reward APR

The Farm Base APR is calculated according to the farm multiplier and the total amount of liquidity in the farm - this is the amount of $TRIP distributed to the farm.
We take the example of the TRIP-FTM pool:
  • The price of $TRIP is $5.36
  • This pool receives 300 $TRIP daily
  • The total LP for this pool is $132465
The farm base APR is then calculated as (daily allotment * 365 / total LP) * 100 = 636768 / 132465 * 100 = 480.70%

Calculating LP Reward APR

Additional to the farm base reward, staking generates LP rewards for providing liquidity. To calculate LP rewards, the following values are required (go to Info->Top Pools):
  1. 1.
    Use the 24H volume to calculate the fee share of liquidity providers in the pool (based on the 0.17% trading fee structure): $35730*0.17/100 = $60.741
  2. 2.
    Next, use that fee share to estimate the projected yearly fees earned by the pool (based on the current 24h volume): $60.741*365 = $22170.465
  3. 3.
    We can now use the yearly fees to calculate the LP reward APR: That's yearly fees divided by liquidity: ($22170.465/$136290) * 100 = 16.26% LP reward APR (note: this is close to but not exactly the LP reward APR shown in the image above because of instantaneous changes in the DEX which may take time to get reflected on the information page)

Calculating the overall APR

The APR shown in the Grow Room is then the sum of the farm base reward APR and the LP reward APR, i.e., 480.70 + 16.26 = 496.96%