- @TolufxtGovernance+2•2
Making Unusually High Liquidity-Pool APR Easier to Understand Raydium ($RAY)
While exploring Raydium's ($RAY) liquidity pools on Solana, I noticed several pools displaying APR above 999.99%. Some examples I noticed also showed very low 24-hour trading volumes, including approximately $6 and $452.
An unusually high APR does not mean that the figure is incorrect. Liquidity incentives, reward emissions, and the amount of liquidity in a pool can all affect the displayed rate.
However, the APR figure alone may not give beginners enough information to understand what is generating that return or how sustainable it might be.
My suggestion:
They should be an information panel beside the APR figure explaining:
Whether the APR comes from trading fees, token rewards, or both.
The period and data used in the calculation.
Whether rewards are active and when they are scheduled to end.
That APR is variable and does not guarantee future returns.
Where possible, showing the fee and reward components separately would make comparisons between pools more meaningful.
This would help people understand unusually high APR figures more confidently without assuming that a high percentage automatically represents a reliable return.