1. Trading Fees
When you deposit your tokens on Bancor, you earn a percentage fee from trades that occur in the token you've deposited. For example, if you deposit LINK, you will earn a fee from each trade to LINK on the network, paid in LINK.
2. Liquidity Mining Rewards
Liquidity Mining Rewards are incentives provided by token projects and/or Bancor to increase liquidity in certain pools.
There are two types of rewards to consider:
1) Primary Token Rewards - rewards paid in the token you’ve staked, which are auto-compounding.
2) Bonus Rewards - rewards paid in a token that is different than the one you’ve staked. These rewards are not auto-compounding. Usually, if you are staking a non-BNT token (e.g., ETH or LINK) these rewards will be paid in BNT.
How to calculate APR?
The estimated annual percentage return (APR) is dependent on trading and other network activity, and fluctuates accordingly, as well as on any active liquidity mining rewards. The Bancor front-end estimates APR based on the past 24h of trading fees.
Trading fees are paid in the token you've deposited, but liquidity mining rewards can be paid out in the tokens you've deposited or in BNT (or both!)