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  • Overview
  • Fee APR Calculation
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  1. YieldIQ Strategy

Fee APR

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Last updated 1 day ago

Overview

APR measures the expected return from fees generated by a vault, based on recent performance. It provides liquidity providers with an estimate of their potential earnings.

This is the metric displayed on app.ichi.org and deployments to other AMMs.

Fee APR Calculation

Fee APR is derived from the fees collected within a given period and the average Total Value Locked (TVL) in the vault. It is annualized to project a yearly return.

Formula:

  • Fees Collected: Total trading fees earned by the vault in the past 7 days.

  • Average TVL : The average Total Value Locked in the vault over the past 7 days.

  • 365 / 7: This scales the 7-day yield to an annualized rate.

Auto-Compounding

Trading fees are automatically reinvested into the position, ensuring that liquidity providers do not need to manually claim rewards. This enhances capital efficiency and allows for seamless growth of liquidity over time.