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spec: revamp LP APY calculation #1218

@wakamex

Description

@wakamex

goals:

  1. show fees earned from longer time-period of trading volume (30-day? since inception?)
  2. be forward-looking and simpler, avoiding historical artifacts
  3. avoid impact of temporary low-liquidity edge cases (-99% LP share price)
  4. show dynamic impact of your decision to LP on the add liquidity screen

possible mechanisms:
for fees:

  • collect fees earned from events, divide them out by LP amount at the time, add them up, turn into APR
    forward-looking:
  • add up: latest yield source APY + fee APR
  • (optionally?) include impact of open positions (weighted average long/short like in lp share price calculation)
    avoid low-liquidity edge cases:
  • calculate everything with a simulated +$50k in liquidity (impact of closing positions, as in above)
    show dynamic impact on LP:
  • add functionality to simulate LP APY with shocked liquidity to the sdk, call that function

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