Users like to see the APR number even though it's kind of fake.
It's generally calculated as ((24h_volume * fee_tier )/ TVL) * 365
As an example the dTIA/TIA pool (link) is a 0.05% pool with $485k TVL and $52.68k of 24h volume.
(52680 * 0.0005) / 485000) * 365 = 0.01982288659
So 1.98%
Example screenshot from Uniswap pool page where if we use their numbers of 0.05% fees, $162.4M TVL, and $110.8M 24h volume we get:
(110.8M * 0.0005) / 162.4M) * 365 = 0.12451354679
So 12.45%
Users like to see the APR number even though it's kind of fake.
It's generally calculated as
((24h_volume * fee_tier )/ TVL) * 365As an example the dTIA/TIA pool (link) is a 0.05% pool with $485k TVL and $52.68k of 24h volume.
So
1.98%Example screenshot from Uniswap pool page where if we use their numbers of 0.05% fees, $162.4M TVL, and $110.8M 24h volume we get:
So
12.45%