A Closer Look at the Mechanics of Liquidity Pool Rewards

In my bid to understanding how APR of a liquidity pool is being calculated, I am forced to take a closer look at the mechanics of liquidity pool rewards. Right now, all I know is that for platforms such as Uniswap, 0.3% of all swap fees will go to liquidity pool rewards, which are then distributed to liquidity providers. The rewards are distributed every block. But there are deeper questions. ...

November 23, 2021 · 7 min · Lei