Valuing BeraSwap LP Tokens

Overview

It's common to want to know the value of a BeraSwap LP token. This generally comes down to its Net Asset Value (NAV), i.e., the value of the underlying tokens.

NAV Calculation

Equation

The Net Asset Value (NAV) of an LP token is calculated as:

$$Pric{e}_{LPtoken}=\frac{\sum _i(Balanc{e}_i\times Pric{e}_i)}{Suppl{y}_{LPTokens}}$$

Where:

• Balance₍ᵢ₎ is the balance of token i in the pool
• Price₍ᵢ₎ is the market price of token i (e.g., from an oracle or price feed)
• Supply₍ₗₚ₎ is the total supply of LP tokens

Pseudocode

(tokens, balances, lastChangeBlock) = vault.getPoolTokens(poolId);
prices = fetchPricesFromPriceProvider(tokens); // e.g., from an oracle
poolValueUsd = sum(balances[i] * price[i]);
lpTokenPriceUsd = poolValueUsd / lpToken.totalSupply();

Special Considerations

Stable Pools

For stable pools, they have pre-minted LP tokens. In such cases:

• Use getActualSupply() instead of totalSupply() to get the correct pool supply

Calculating Value for a Specific Address

To calculate the value of LP tokens held by a specific address:

myLpTokenValueUsd = lpToken.balanceOf(myAddress) * lpTokenPriceUsd;

If LP tokens are staked, include staked balance:

myLpTokens = lpToken.balanceOf(myAddress) + lpStakingContract.balanceOf(myAddress);
myLpTokenValueUsd = myLpTokens * lpTokenPriceUsd;

Example: Valuing $BERA/$HONEY LP Tokens

Let's value LP tokens for a $BERA/$HONEY pool:

Step	Action	Result
1	Query BeraSwap	tokens = [$BERA, $HONEY], balances = [1000 BERA, 10000 HONEY]
2	Fetch prices	prices = [$10 (BERA), $1 (HONEY)]
3	Calculate pool value	poolValueUsd = (1000 _ $10) + (10000 _ $1) = $20,000
4	Get total LP supply	totalLpSupply = 1000
5	Calculate LP token price	lpTokenPriceUsd = $20,000 / 1000 = $20

In this example, each LP token is worth $20.