The Hidden Math Behind PancakeSwap Pool APR: Why Displayed Yields Don’t Account for Impermanent Loss
A liquidity provider deposits 1 BNB and 3,000 USDT into a PancakeSwap pool, observing a displayed annual percentage rate (APR) of 45 percent. Six months later, the provider withdraws the position expecting roughly 22.5 percent gains from fee rewards. Instead, the account shows a loss despite the high APR. The tokens have moved against the …