That's the trading volume of a "normal" Token which has its own price. With the pegged characteristic of tenXXX Tokens and the different liquidity pools, Teneo adds more trading pressure to this "normal" behavior because of arbitrage opportunities (read topic tenXXX Tokens and Example: Adam and the Arbitrage)
Looking at other tokens, a usual trading volume per day is 10%.
Teneo takes a fee of 1.2% (0.2% goes into the DAO wallet).
Peter locks 1 ETH and receives 0.989 tenETH
Peters Balance -> 0.989 tenETH
Peter earns 1% of 10% (0.1%) through the reflows
Peters Balance -> 0,989989 tenETH
Peter earned in total 10% (100 times 0.1%) after hundred days.
Peters Balance -> 1.0879 tenETH
If he unlocks his ETH now, he has to pay the fee of 1.1% again, but still makes easily a profit:
1.0879 tenETH -> burn/unlock -> 1,0759331 ETH
More Ether for Peter.
Calculated for a year, this results in an APR of 36.5% (uncompounded) for tenETH. Keep in mind when you swap in or out you have to pay fees, so your APY for ETH is 33.5% (uncompounded) in this example.
Compunded in this example (Peter has to pay gas fees to compound):
+44% APY in the first year.
+103% APY in the second year.
+99% APY in the third year.
+107% APY in the fourth year.
+123% APY in the fith year.
The longer you hold and compound the higher will be the apy. Keep in mind that all calculations are based on 10% volume per day and 1% txn fees. Both may change over time.