How are liquidity pool yields calculated?

Just saw the BTC/PRV pool is sitting at an eye watering 61% APR. XMR/PRV at 36% APR. That’s super juicy. I understand the general risks involved but how are the yields calculated on liquidity pools?

If I wanted to start my own pool for a liquidity pair that is currently not available, how would yields be calculated on that?

Do those yields diminish as more people jump in or are they fixed at the moment you jump in but are lower for others who jump in later? Just curious how it works.

Hi @SPAddict25, this APR is the annualized average of the percentage of total rewards (collected trading fees) value against total liquidity value (both converted to PRV) within 7 days period. Note: this is the total of all contributors to a pool, not individuals as not everyone contributes that same amount.

Hi @JG20, these yields are not fixed, they are dynamic depending on the trading activities (trading volume) and total value locked (liquidity) in the Incognito exchange.