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.