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Liquidity Farming
What Is Total Yield (APY) and How to Calculate

What Is Total Yield (APY) and How to Calculate

2023-02-17 12:56
The total yield is the estimated annual fees you can expect to receive for contributing to a liquidity pool plus the additional rewards.

How is the total yield calculated?

Total Yield = Fees + Additional Rewards
  • Fees: The amount distributed hourly to the Liquidity Providers from the fee traders pay to buy or sell digital assets within the liquidity pool. This is the fee you’ll receive, not what you need to pay.
  • Additional Rewards: BNB or other digital asset rewards are distributed hourly from Binance on a discretionary level to reward the Liquidity Providers for participating in liquidity pools. Binance reserves the right to change this amount at any time.
Examples:
Example 1: BTC/USDT poolExample 2: ETH/BETH pool
  • Fees: BTC & USDT will be paid hourly to Liquidity Providers.
  • Additional Rewards: BNB will be paid hourly to Liquidity Providers.
  • Fees: ETH & BETH will be paid hourly to Liquidity Providers.
  • Additional Rewards: BNB & BETH will be paid hourly to Liquidity Providers.