APR / APY calculations

Stability Pool staking

APR for INDY rewards

Averaged over the prior epoch

Formula

APRt=ct1dt1at1bt1365100APR_t = \frac{c_{t-1} * d_{t-1}}{a_{t-1} * b_{t-1}} * 365 * 100

Where

  • t is the day at which the calculation is performed

  • a is the amount of a given iAsset staked in a Stability Pool

  • b is a given iAsset price at daily close, denominated in ADA

  • c is the daily amount of INDY awarded to a given iAsset’s Stability Pool

  • d is the INDY price at daily close, denominated in ADA

APR for ADA rewards

Averaged over a period of last 3 months or over a period spanning from the day of iAsset launch till the day of reward calculation, whichever is shorter.

Formula

v=abcv = a - b * c
μ=i=1nxin \mu = \frac{\sum_{i=1}^nx_i}{n}
APR=i=1nviμ365n100APR = \frac{\sum_{i=1}^{|n|}v_i}{\mu} * \frac{365}{n} * 100

Where

  • n is min[90, number of days from iAsset launch to the day of calculation]

  • v is a set comprising values gained from liquidated CDPs over ‘n’ days, denominated in ADA

  • a is the amount of collateral from a liquidated CDP, denominated in ADA

  • b is amount of iAsset burned from a liquidated CDP

  • c is the Oracle Price of the iAsset from a liquidated CDP taken at the time of liquidation, denominated in ADA

  • μ is the average value staked in the iAsset’s Stability Pool over n days, denominated in ADA

  • x is a collection of total value staked in an iAsset Stability Pool, denominated in ADA and covering a period of n days

Liquidity Pool Tokens staking

APR for INDY rewards

Averaged over the latest epoch

Formula

APRt=ct1dt12at1bt1365100APR_t = \frac{c_{t-1} * d_{t-1}}{2*a_{t-1} * b_{t-1}} * 365 * 100

Where

  • t is the day at which the calculation is performed

  • a is the amount of a given iAsset locked across all DEXs

  • b is the iAsset price at daily close, denominated in ADA

  • c is the daily amount of INDY awarded to LP stakers of a particular iAsset

  • d is the INDY price at daily close, denominated in ADA

INDY staking

APR for INDY rewards

Based on the latest epoch

Formula

APR=bay100APR = \frac{b}{a} * y * 100

Where

  • a is the amount of INDY staked at a particular epoch

  • b is the amount of INDY awarded to INDY stakers at a particular epoch

  • y is a constant representing the number of Cardano epochs in a year (fixed at 73)

Considerations

The APR value can only be computed once per epoch (every 5 days), given the amount of INDY awarded to INDY stakers can only be determined at the end of an epoch.

APY for INDY rewards

Based on latest epoch

Formula

APY=((1+APRy100)y1)100APY = ((1 + \frac{APR}{y*100})^y - 1) * 100

Where

  • APR is the estimated annualized return for INDY stakers

  • y is a constant representing the number of Cardano epochs in a year (fixed at 73)

APR for ADA rewards

Based on last 30 days

Formula

v=a(bc)v = a * (\frac{b}{c})
APR=i=1vvis12100APR = \frac{\sum_{i=1}^{|v|}*v_i}{s} * 12 * 100

Where

  • v is a set comprising the value of ADA distributed in a day, over a period of the last 30 days and denominated in INDY

  • a is the amount of ADA distributed in a day

  • b is the daily close price of ADA, denominated in USD

  • c is the daily close price of INDY, denominated in USD

  • s is the average amount of INDY staked for the last 30 days

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