Yield farming can give better rewards than Amazon Pools, but it comes with a risk of Impermanent Loss. It’s not as scary as it sounds, but it is worth learning about the concept before you get started.
Yield Farm APR calculation includes both the rewards earned through providing liquidity and rewards earned staking LP Tokens in the Farm.
Previously, rewards earned by LP Token-holders generated from trading fees were not included in Farm APR calculations. APR calculations now include these rewards, and better reflect the expected APR for Farm pairs.
Below is a basic explanation of how APR is calculated.
In the image above of the WBNB/BUSD pair, we see these values: