Net APR

0xWhale is deeply committed to ensuring the highest level of transparency and quality of service to Liquidity Providers.

Therefore, it has been decided to not communicate on the metric generally used by other players in the industry (the trading APR) but rather on the net APR.

For clarification, the trading APR typically includes only the inflows from swap commissions. It’s a simplified metric and doesn't provide a holistic view of the performance for Liquidity Providers. Notably, it doesn’t take into account the dreaded Impermanent Loss. Many Liquidity Providers are actually facing negative returns despite positive trading APRs being displayed.

On the other hand, Net APR is more encompassing as it takes into account all profits and losses to tell you exactly how much you get in your pockets. It is computed against a HODL strategy, which means it represents the yield you are making compared to someone holding the tokens without putting them to work in a protocol.

0xWhale leverages DeFi composability features and allows you to benefit from 5 layers of yield, as shown by this graphic.

The following sections detail how each layer of yield is computed.