The crazy-high APR is mostly a reflection of it being very new. The project isn’t even 3 weeks old yet. It’s injecting bonus rewards into the liquidity pools, and the rewards decrease by half each week. As the pools fill up, the APR goes down, and it will likely settle somewhere around 100%. The 100% is because there’s risk involved (see “impermanent loss”), and it incentivizes people to provide liquidity despite that risk. The APR is paid by paying a proportional percentage of fees from trades to liquidity providers.

I’m not sure if that adequately addresses your question or if it was meant to be rhetorical, but let me know if there’s more I can help you with. Thanks!

software engineer & manager of people