Liquidity Pool Yield Calculator

How it is calculated

The tool works out your slice of the pool and the fees it earns. share = position ÷ TVL, your daily fees = daily_fees × share, annual fees = your daily fees × 365 and APR = annual fees ÷ position × 100. Position, TVL and daily fees should all be in the same currency, such as US dollars; daily_fees is the total trading fees the whole pool collects per day. The position cancels out of the APR, so the result equals daily_fees × 365 ÷ TVL × 100. It is simple, not compounded, and counts fee income only. It ignores impermanent loss, token price moves, gas costs and changes in fees or TVL over time. Position and TVL must be above zero, fees may be zero, and a position larger than the pool's TVL is rejected because your deposit is part of the pool.

Common mistakes

• Using one very busy day's fees as a typical day. The tool multiplies by 365, so a single spike overstates the yearly rate.
• Treating the APR as profit. It counts fees only, so impermanent loss or a falling token price can leave you worse off than holding the tokens.
• Entering the position in tokens while TVL is in dollars. Both must be in the same currency, otherwise the share is meaningless.
• Entering a TVL that is smaller than your position, for example forgetting to include your own deposit in the pool or typing the wrong number of zeros. A share above 100% is impossible and the tool shows no result.
• Reading APR as if it were APY. This figure assumes you never reinvest the fees, so compounding would give a higher number.