How is pool APY calculated for liquidity providers

Dear 1inch member:

  1. How is the APY stated in the Pool Info determined? Is there any formal documentation from 1inch that explains how the information in the info box is determined? If not, may we make a proposal to have this documented and explained.

  2. How is the fee on a pool transaction distributed? Specifically, is the fees distributed all to the pool liquidity providers or is some of the fee distributed to 1inch token holders through the governance distributions.

Thank you


Did you ever get a response to this?

You can find the relevant information in the “Help” in the following article:

How can I put my crypto to work?

Snippet from the “Liquidity Providing” section:

The displayed APY for all liquidity pools can be calculated with:
(current_liquidity/(current_liquidity - profit_last_24_hours))^365

Please note: This is based on historical data. The actual APY for the liquidity provided depends on different factors, like: trading volume and price changes of the asset-pair (see also: impermanent loss).

To answer your second question: there is a treasury, but if you are seriously curious, why don’t you have a look at the smart contract?

Here you can have a look at the code for the 1INCH-BNB pair:
Contract 0xdaF66c0B7e8E2FC76B15B07AD25eE58E04a66796

Don’t trust. Verify!