Hi all, I am providing liquidity to a wstETH/cbETH pool. The APR breakdown states that there is approx. 1.2% APR on both tokens on top of BAL rewards and trading fees. Does it mean that I am earning full staking rewards of approx 5% p.a. and on top of that all the pool’s APR? Or am I missing out on staking rewards due to liquidity provision and getting the pool’s APR as a total result? Any idea pls? Thanks
the APR displayed on the site is what you will earn based on current conditions as a liquidity provider. Balancer takes 50% of the staking yield as a protocol fee, that’s why you see that 1.2% APR on both tokens which is probably lower than you expect. The BAL rewards + trading fees make up for that yield fee.
That said, if the staking yield of holding wstETH or cbETH in your wallet is higher than the total APR shown on the UI for being an LP then that could be the better course of action.