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How Maker PnL and APR are Calculated

Peer shows maker performance from actual fills. PnL comes from the price edge on filled orders: the difference between the fiat you received and the fiat value implied by the market rate at the time of the fill. APR is an annualized view of realized performance; it is not a guaranteed return.

Key Inputs​

  • Fill amount - How much USDC a buyer filled.
  • Your quoted rate - The fiat per USDC rate on that fill.
  • Market rate - The market fiat per USDC rate used for comparison.
  • Realized PnL - The price edge on the fill, after converting the rate difference into fiat/USDC terms.
  • Time and capital used - APR annualizes realized PnL relative to deposited capital and elapsed time.

Calculation Steps​

Price edge​

priceEdge = (yourQuotedRate - marketRate) / marketRate

Realized PnL on a fill​

realizedPnl = fillAmount * priceEdge

Annualized APR​

apr = (realizedPnl / depositedCapital) * (365 / daysElapsed) * 100%

If you price below market, the price edge is negative. That may help you fill faster, but it can reduce realized PnL.

Example Calculation​

Assume:​

  • Fill Amount = 1,000 USDC
  • Your Quoted Rate = 1.02 USD per USDC
  • Market Rate = 1.00 USD per USDC
  • Deposited Capital = 10,000 USDC
  • Days Elapsed = 30

Step-by-step:​

priceEdge​

(1.02 - 1.00) / 1.00 = 0.02 (2%)

realizedPnl​

1,000 * 0.02 = 20 USDC equivalent

apr​

(20 / 10,000) * (365 / 30) * 100% ≈ 2.43%

In this simplified scenario, a 2% premium on a 1,000 USDC fill creates 20 USDC equivalent of realized PnL. APR depends on how much capital was deployed and how long it took to generate that PnL.

Key Takeaways​

  • Price edge: A positive premium can create realized PnL on a fill. A discount can fill faster but may reduce realized PnL.

  • Volume and Liquidity: Fill frequency matters. Idle liquidity earns nothing until buyers choose your quotes.

  • Deposit Amount: Larger deposits can support larger fills, but unused capital lowers annualized APR.

  • APR: Annualizes realized performance for comparison. It should not be read as a promise about future fills.