> 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

How Rewards Are Calculated?

<figure><img src="https://665930138-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMhRoTVSVhyZUI6BeRikY%2Fuploads%2FZgeMttpCwhO2PF8mMzwZ%2Freward%20calculation2.png?alt=media&amp;token=811fba30-c7a8-4b60-865a-2391f760f4bb" 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