> For the complete documentation index, see [llms.txt](https://docs.pawtato.gg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pawtato.gg/pawtato-land/gameplay/resources/liquidity-rewards/lp-rewards.md).

# LP Rewards

<figure><img src="/files/EEAa0Ri55pTeNgLIpBDy" alt=""><figcaption></figcaption></figure>

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


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.pawtato.gg/pawtato-land/gameplay/resources/liquidity-rewards/lp-rewards.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.