# APR

Annual Percentage Rate (APR) calculation on Collection.xyz

Determine the

**number of periods per year**based on the given duration We are using 1d duration, so there will be 365 periods per yearCalculate the

**total value locked (TVL)**by multiplying the market cap of ETH by the percentage of the market cap that is actively providing liquidity: TVL = MarketCapEth* pctOfMarketCapThatlsActively ProvidingLiquidity *Assumption used: pctOfMarketCapThatlsActivelyProvidingLiquidity = 0.05Calculate the

**accrual per period**by multiplying the volume in ETH by the collection XYZ share and the fee on trade volume: accrualPerPeriod = VolumeEth * collectionXYZShare * feeOnTradeVolume *Assumption used: collectionXYZShare = 0.2 feeOnTradeVolume = 0.05Calculate the

**accrual per year**by multiplying the accrual per period by the number of periods per year accrualPerYear = accrualPerPeriod * amountOfPeriodsPerYearFinally, calculate the

**APR**by dividing the accrual per year by the TVL APR = accrual PerYear / TVL

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