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Tag: How is PancakeSwap APR calculated

How do you stake LP tokens on PancakeSwap?

26 March 2022 Enpatika.com Genel

First, you need to provide the liquidity pair (e.g., two different cryptocurrencies). That will reward you with LP tokens and part of the trading fees. Afterwards, if you decide to stake your LP tokens, under the Farm tab, choose the CAKE-BNB LP farm , and you will earn CAKE tokens.

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Is staking on PancakeSwap safe?

26 March 2022 Enpatika.com Genel

Secure. PancakeSwap has proven to be very secure . For one, it’s a non-custodial DEX, meaning that the platform never holds your assets directly in large hot wallets. DEXs are much more secure than centralized exchanges for this reason.

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What is the formula for APR?

26 March 2022 Enpatika.com Genel

The formula for calculating APR is A = (P(1+rt)) , where A = total accumulated amount, P = principal amount, r = interest rate, and t = time period.

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What is LP reward APR?

26 March 2022 Enpatika.com Genel

The true APR consists of the yield earned in $CAKE rewards + fees earned from being an LP . The fee APR is based on the average LP fees over the last 7 days.

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How are LP rewards calculated?

26 March 2022 Enpatika.com Genel

Calculating LP Reward APR

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How is APR calculated in yield farming?

26 March 2022 Enpatika.com Genel

To understand APY, you must first understand its simpler “yield brother”, APR or annual percentage rate. Although similar, APR and APY can be drastically different given enough time. APR is calculated as the percentage of your initial deposit you will receive back after 365 days .

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How do you calculate LP on PancakeSwap?

26 March 2022 Enpatika.com Genel

Whenever someone trades on PancakeSwap, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on. For example: There are 10 LP tokens representing 10 CAKE and 10 BNB tokens. 1 LP token = 1 CAKE + 1 BNB .

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