LUVI (Liquidity Units Value Index)is a summary value to represent the value of a Liquidity Unit on THORChain. It is more accurate to reflect the yield of the pool as the change in LUVI over a period of time.
How “APR” or “APY” is calculated within Defi is not standardised and are often opaque and obscure. A consistent and standardised approach has been developed to measure pool health and performance in order to better inform network users via THORChain’s Midgard API(THORChain’s data API which provides aggregated stats such as price, swap volumes and pool depths)
Within Midgard a new metric called Liquidity Unit Value Index ( LUVI) has been added. The APR calculation has been updated to be based off this new LUVI metric.
While this has been updated within THORChain, it is up to interfaces to adopt these changes. LUVI and the updated APR calculations do not change the rewards or accounting for liquidity providers.