Objective:

• Calculate Real Yield to LPs. This is the yield that comes from swap fees. It is net of Block Rewards and does not factor in token price changes.

Notes:

• I understand that the APY will vary by pool. The APY I calculated measures the overall profitability of LP'ing on Thorchain. APY per pool can be calculated later if my methodology is correct.

Challenges:

• Impact of Savers and Synths.

The real yield paid to LPs is determined by swap fees and liquidity. First, let's look at the total liquidity on all Thorchain pools:

Then, let's add daily swap fees paid to LPs. These earnings do not include RUNE paid to LPs from block rewards. It is real yield.

The Real Yield paid to LPs is calculated as follows: Daily swap fees paid to LPs / Liquidity * 365.

The Real Yield paid to LPs is not a valuation metric for RUNE. The Real Yield measures how profitable it is to LP on Thorchain, in terms of non-RUNE rewards paid to liquidity providers.