# APR

1. Determine the **number of periods per year** based on the given duration\
   We are using 1d duration, so there will be 365 periods per year <br>
2. Calculate the **total value locked (TVL)** by multiplying the market cap of ETH by the percentage of the market cap that is actively providing liquidity:\ <mark style="color:yellow;">TVL = MarketCapEth\* pctOfMarketCapThatlsActively ProvidingLiquidity</mark>\
   \ <mark style="color:purple;">\*Assumption used:</mark>\ <mark style="color:purple;">pctOfMarketCapThatlsActivelyProvidingLiquidity = 0.05</mark><br>
3. Calculate the **accrual per period** by multiplying the volume in ETH by the collection XYZ share and the fee on trade volume: <mark style="color:yellow;">accrualPerPeriod = VolumeEth \* collectionXYZShare \* feeOnTradeVolume</mark> \
   \ <mark style="color:purple;">\*Assumption used:</mark> \ <mark style="color:purple;">collectionXYZShare = 0.2</mark> \ <mark style="color:purple;">feeOnTradeVolume = 0.05</mark><br>
4. Calculate the **accrual per year** by multiplying the accrual per period by the number of periods per year\ <mark style="color:yellow;">accrualPerYear = accrualPerPeriod \* amountOfPeriodsPerYear</mark><br>
5. Finally, calculate the **APR** by dividing the accrual per year by the TVL\ <mark style="color:yellow;">APR = accrual PerYear / TVL</mark>