We sometimes get questions from users who notice a discrepancy between the APR estimates for their positions and the APR estimates for the KyberSwap Elastic pool as a whole. For example, in the following case, the AVAX-USDC (Avalanche) Elastic Pool total Average APR (322.04%) seems to dwarf the user’s position’s total APR (137.62%).
This is because the pool APR estimate (i.e. the APR due to LP fees) for the entire pool is calculated based on the average of all the in-range positions in the pool. Some positions may have price ranges that are set to be very aggressive, so their APRs seem high, but that assumes an ideal world where the position never goes out of range. In reality, positions with overly-aggressive narrow price ranges run the risk of the quickly going out of range and becoming inefficient.
The pool APR estimate shown specific to your position takes the price range that you set into account, so while it does seem much lower than the pool's total average APR estimate, it is also likely to be more in line with reality as your position is likely to remain in range for longer.