(APR vs TVL vs Volume Decision Grid)

🔑 Core Relationship

LP APR ∝ Volume LP APR ∝ Fee Rate LP APR ∝ LP Fee Share LP APR ∝ 1 / TVL

3D Sensitivity Table (Realistic Operating Grid)

Assumptions

Fee = 4.5 bps effective

LP Share = 60%

TVL ↓ / Volume → 150M Daily 300M Daily 600M Daily
150M TVL 9.8% 19.6% 39%
300M TVL 4.9% 9.8% 19.6%
500M TVL 3.0% 5.9% 11.8%

Interpretation

Safe Institutional Zone

TVL: 300M – 600M Volume: 250M – 500M daily APR: 10% – 15%

Sensitivity Visual (Concept)

APR %

40 | █ 30 | █ 20 | █ 15 | █ 10 | █ 8 | █ ← Target band 6 | 4 | +-------------------------- 150 300 600 Daily Volume