XEI Docs
  • 👋Welcome to XEI
  • Feature Description
    • 💫Swap Trading
    • ✨Leverage Trading
    • 💰Liquidity Pools
    • 🎭Lending Pools
    • 💵Liquidation
    • 💹Oracle
  • PRODUCT GUIDES
    • 📒Tutorial
      • Getting Started on XEI
      • How to Start a Market Swap
      • How to Add Trading Tokens
      • How to Start Futures Trading
      • How to Add Liquidity
    • ❓FAQ
      • What should I do if I can't find the cryptocurrency I want to trade?
      • What are market orders and limit orders?
      • What fees are associated with Swap transactions?
      • What are fee tiers, and how do you choose the right fee tier?
      • What happens if the current price exceeds the price range set for my liquidity position?
      • Are fee rewards automatically compounded?
      • What factors affect LP APR?
      • What is Lending Pools?
      • How is the reward period calculated after participating in Lending Pool?
      • Which cryptocurrencies are supported by Lending Pool?
      • How long does it take for redemption to be credited to the account?
  • OTHER
    • 💌Contact Us
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On this page
  • Trading volume
  • Fee tier of the liquidity token pair
  • Amount of tokens added to the liquidity position
  • Set price range
  • Amount of currently effective liquidity
  • Whether the liquidity position is in an active state
  1. PRODUCT GUIDES
  2. FAQ

What factors affect LP APR?

The LP fee reward APR of different liquidity positions may vary. It is based on the following influencing factors:

Trading volume

More trading volume generates more fee rewards.

Fee tier of the liquidity token pair

Higher fee tiers result in higher fee rewards from a single transaction.

Amount of tokens added to the liquidity position

The larger the amount of tokens added, the greater the relative share in the total effective liquidity, which will result in more fee rewards from transactions.

Set price range

When setting a smaller price range, the liquidity concentration is higher for the same amount of tokens added, meaning that this liquidity accounts for a larger share relative to the total effective liquidity and can obtain more fee rewards from transactions.

Amount of currently effective liquidity

If more users deposit and concentrate their liquidity in the same range as you, you will receive fewer fee rewards because your relative share of the total is smaller.

Whether the liquidity position is in an active state

Only liquidity positions in an active state can earn trading fee rewards.

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Last updated 11 months ago

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