Net APY

How your Net APY is calculated

Net APY refers to the overall profitability or unprofitability of your account based on your current assets and loans.

Net APY is calculated as follows:​

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$$\begin{split} Margin = \sum_{assets} (SuppliedValue_i\cdot SupplyAPY_i -\newline BorrowedValue_i\cdot BorrowAPY_i) \end{split}$$

$$Net APY = \begin{cases} \frac{Margin}{totalSuppliedValue},&if\ Margin>0\newline\newline \frac{Margin}{totolBorrowedValue}, &if\ Margin <0\newline 0, &if\ Margin=0 \end{cases}$$

Example

Supplied: 1000 WAVES ($5000) with 4% Supply APY.

Borrowed: 1000 USDT ($1000) with 8% Supply APY.

Margin = 5000 ⋅ 0.04 – 1000 ⋅ 0.08 = 200 – 80 = 120 > 0

Net APY = 120 / 5000 = 0.024 = 2.4%