The calculation serves as an example for pure illustrative purposes. The returns of Liquidity Mining are constantly changing, please refer to Cake for the most recent information.
DFI Rewards = Swap fees and block rewards from the DeFiChain
BTC Rewards = Swap fees
- Rewards get paid out every 12 hours on Cake (At the first entry there can be a delay of up to 24h)
- Let’s say 1 BTC = $20,000 and 1 DFI = $0.50
- APR of one 12-hour period)
- Sum up all rewards paid out in this 12-hour period. For example 0.01 BTC and 1000 DFI
- Calculate how much this is in dollars: 0.01 * $20,000 + 1000 * $0.5 = $250
- Get the amount of shares on Cake at the time of the payout. For example 1500 shares.
- Get how much BTC and DFI these are worth on DefiChain. For example: 25 BTC and 100.000 DFI
- Calculate how much this is in dollars: 25 * $20,000 + 100,000 * $0.50 = $550,000
- Then do: (Rewards in dollars / shares in dollars) * (24/12) * 365 * 100 to get the APR of this 12-hour period in %, so: ($250 / 550,000) * (24/12) * 365 * 100 =33.18%
- Do this calculation for the last 6 12-hour periods or so (so last 3 days) and take the average there to be more precise