The expected annual return is estimated by multiplying 365 with the expected daily return which considers impermanent loss and pool rewards of each day (or mean value of the actual daily return) of the last 20 days.
R e t u r n = p o o l _ v a l T − p o o l _ v a l T − 1 + d a i l y _ p o o l _ r e w a r d T Return =pool\_val_T-pool\_val_{T-1}+daily\_pool\_reward_T R e t u r n = p oo l _ v a l T − p oo l _ v a l T − 1 + d ai l y _ p oo l _ re w a r d T E x p _ R e t u r n = ∑ i = 1 N p o o l _ v a l i − p o o l _ v a l i − 1 + d a i l y _ p o o l _ r e w a r d i N Exp\_Return = \frac{ \sum_{i=1}^N pool\_val_{i}-pool\_val_{i-1}+daily\_pool\_reward_{i} }{N} E x p _ R e t u r n = N ∑ i = 1 N p oo l _ v a l i − p oo l _ v a l i − 1 + d ai l y _ p oo l _ re w a r d i p o o l _ v a l = ( t o k e n _ p r i c e A × a m t A ) + ( t o k e n _ p r i c e B × a m t B ) pool\_val=\big(token\_price_A \times amt_A\big) + \big(token\_price_B \times amt_B\big) p oo l _ v a l = ( t o k e n _ p r i c e A × am t A ) + ( t o k e n _ p r i c e B × am t B ) a m t = p o o l _ v a l 2 × t o k e n _ p r i c e amt= \frac{pool\_val}{2 \times token\_price} am t = 2 × t o k e n _ p r i ce p oo l _ v a l a m t 0 = 100 2 × t o k e n _ p r i c e amt_{0} = \frac{100}{2 \times token\_price} am t 0 = 2 × t o k e n _ p r i ce 100 S D _ R e t u r n = ∑ i = 1 20 ( R e t u r n i − R e t u r n ‾ ) 2 19 SD\_Return= \sqrt{ \frac{ \sum_{i=1}^{20} \big(Return_{i} - \overline{Return} \big)^{2} }{19} } S D _ R e t u r n = 19 ∑ i = 1 20 ( R e t u r n i − R e t u r n ) 2 t o k e n _ p r i c e token\_price t o k e n _ p r i ce
a m t amt am t
