How is LRT² APR Calculated?

The weekly LRT² claims flow

The 7 Day APR is calculated with the following formula:

APR = (weeklyRewardsInEth / avgTotalSupplyInEth) * 52 * 100

A key part of this calculation is determining the value of Weekly Rewards in ETH. This is calculated based on prices at the end of the Rewards Period

numRewardsTokens * rewardsTokenPrice / ethPrice

Once again, APR is determined based on the value of rewards at the end of the Rewards Period, not the value of those rewards on the distribution date

Example

Supposing that:

• On Days 1 through 7, the protocol has 100 eETH during the entire rewards period

• On Day 14, EigenLayer releases 100 EIGEN as a restaking reward

• On Day 7, at the end of the rewards period, value of EIGEN is $3, ETH = $3000

weeklyRewardsInEth = 50 * 3 / 3000 = 0.05 ETH

APR = (0.1 / 50) * 52 * 100 = 2.6%