How is King APR Calculated?

Figure 1: King's distribution flow.

The 7 Day APR is calculated with the following formula:

$$APR=\frac{weeklyRewardsin\mathrm{\Xi }}{avgTotalSupplyin\mathrm{\Xi }}\times 52\times 100$$

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

$$weeklyRewardsValue=numRewardsToken\times \frac{weeklyRewardsin\mathrm{\Xi }}{\mathrm{\Xi }Price}$$

Note:

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

$$weeklyRewardsin\mathrm{\Xi }=50\times \frac{3}{3000}=0.05\mathrm{\Xi }$$$$APR=\frac{0.1}{50}\times 52\times 100=2.6$$