APRs

The APR shown for a farm is the sum of two components:

Reward APR

Based on the protocol’s token incentives and their current value. Emission schedules and reward eligibility vary by protocol, so this is an estimate rather than a promise of realized returns.

Reward rates are usually set by the protocol on a fixed schedule (for example, weekly, changing at a set time each week) and held fixed until the next update.

Fee APR

Based on swap fees, which accrue when trades occur in the pool. The estimate generally uses the previous 7 days of fees and the liquidity eligible to receive them. For a pool younger than a week with a known creation time, available fees are projected from its age with a minimum one-day observation window. Concentrated-liquidity estimates also depend on the selected range.

This is an estimate. Actual returns can vary, since the previous week’s volume may not represent the current week.

Display options

The APR options button next to a farm’s APR lets you change how it’s shown:

• Compounding: No (APR) shows the simple annualized rate, and Yes (APY) compounds it
• Range width (concentrated liquidity farms only, since it doesn’t apply to full-range positions): the Fee APR depends on how tight a price range you’d deposit in, so choose Average, Narrowest, or a Custom range in ticks or in a ± percentage around the current price

These settings only change how the number is displayed. They don’t affect what you’d actually earn.