LP Rewards

How Rewards Are Calculated?

Rewards are calculated using an adjusted geometric mean formula to ensure fairness:

Formula: sqrt(token1_value * token2_value) * 2

Examples:

• Balanced Position: $100 Pawtato Water + $100 SUI

  • Reward: 200 (calculated as sqrt(100 * 100) * 2)

• Unbalanced Position: $100 Pawtato Water + $10 SUI

  • Reward: 63 (calculated as sqrt(100 * 10) * 2)

How are Positions Evaluated?

• Daily Snapshots - Multiple snapshots are taken throughout the day to track active positions.

• Daily Average - Final rewards are based on the average of all snapshots to ensure fair calculation.

• Active & In-Range Positions Required - Only positions that are actively providing liquidity within the pool’s current price range are eligible for rewards