# Explain Liquidity Earnings to me like I'm 5 please

I’m really struggling to understand this equation. Where is that 2 million coming from? Currently, the total liquidity across all pools is roughly \$2,776,450. Liquidity in USDT pool is \$1,008,110. So, should that number in the equation be

1. \$2,776,450
2. \$2,776,450 (converted to PRV)
3. \$2,776,450 (converted to PRV)/2 (since earnings are only on the PRV side of pairs)
4. \$1,008,110
5. \$1,008,110 (converted to PRV)
6. \$1,008,110 (converted to PRV)/2 (since earnings are only on the PRV side of pairs)

Also, Is it 55k per pool I’m invested in or total across all pools? So if I had 10k in USDT and 10K in USDC, It would be 110K in rewards?

### Here’s how to calculate your rewards

Let’s say you’ve contributed 10,000 PRV and equivalent in 6,700 USDT into liquidity pools. Total PRV in liquidity pools are 2,000,000 PRV

In June, 55,000 PRV will be distributed to liquidity providers. That’s you! Your contribution is 1/200 (10,000/2,000,000) of the total pool.

June reward = 55,000 PRV/\$2,000,000 * 10,000 = 275 PRV

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A different way of saying (55,000 PRV)* (10,000/2,000,000)

The 2 million is an estimate. It is coming from the total PRV across all liquidity pairs. The total rewards of 55,000 PRV will be distributed across all liquidity providers on their PRV contribution. They estimated it would be around 2 million on the PRV side of the contribution.

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I’m with you @Rick_Shah on that part. It sounds like you’re saying the pdex total liquidity of \$2,776,450 (current value) is the number I should be using for my calculation. So I should take \$2,776,450 and divide by 2 (since that total is the value including the currency pairs), and then convert to the PRV equivalent of the current USD value to get the amount of total PRV in all liquidity pools?

Side note, what would be the difference about what pool I invest in if the rewards are being distributed evenly? If I throw it all into BTC lets say. Liquidity for BTC is high, but trading volume is low. But the trading volume is high in USDT with low liquidity. Shouldn’t there be a incentive to invest in USDT instead? Isn’t the goal to create a balance between liquidity and volume in each pool for stability of the network?

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Yeah there should be incentive…
Currently there is not, but hopefully soon there will be.

If you scroll down and look at the comments in this thread, we have been discussing ways to more incentivize the providing of liquidity. Liquidity rewards program v2

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I think they are making some changes in July. See if this helps:

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Thanks @InvestForFamily. I got it figured out until then. I linked to the same post on my new link though in case anyone else did see that either.

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Total PRV in liquidity pools are 2,000,000 PRV not in \$

Blockquote

June reward = 55,000 PRV/\$2,000,000 * 10,000 = 275 PRV

Blockquote

Not \$2,000,000 but 2,000,000 PRV

delete \$ symbol

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Hey @Thriftinkid the mistake is that you trying to mix \$ and PRV. For the V2 version, we tried to simplify the flow and made the calculation on the PRV part only.

1. Sum up PRV form all liquidity pairs you have added
2. Check total locked PRV on pDEX https://incscan.io/pdex/tokens
3. Get the % of your PRV to compare to the whole locked amount
4. The same % from the June PRV pool will be your reward if you keep funds in the pool whole month.

We found that this kind of calculation quite difficult to understand this why we started work on Coming soon: Pool v.2. Once it’s life all questions about calculation will be resolved.

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Got it! Thanks for the clarification @andrey! Updated the calculation on my google sheet. Looking forward to the update!

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