Numbers About Vault
Firstly, we will introduce the difference between APY and APR, and how we calculate these numbers to display.
When we see APY, it means the compound yield. Compound means it will swap your reward token to the original token and reinvest these token. Then every reward will earn more reward by doing this.
But on the other hand, the APR is only the single yield. The reward token will only stay at your wallet and earn nothing more.
So let's assume the reinvest frequency is 1 day.
Daily Reward Mint Amount is the total reward amount generated in one day which we can get from the protocols we are farming with.
TVL($) = total deposited amount in the farming pool * asset price
Daily return(%) = Daily Reward Mint Amount* Reward Price/TVL($)
APY = (1+daily return(%))^365-1
APR = daily return(%)*365
There are several points to clearify:
The longer time you invest with Earnmos, you will see more power of compound. Here is a comparison for APY and APR, if we use daily return 1.5%.
APY is calculated with the current price of the token involved, so the price is always changing which will make the APY changes.
We thought that the old estimated APY calculation is not that good to apply on new auto-stake strategy.
So here is a new series of calculation to get a better estimated APY interpretation.
Daily farm return(%) = Daily Reward Mint Amount* Reward Price/TVL($)
Daily farm return(%), this represents how much you can earn with depositing in the farm pool for one day. Same as Daily return(%).
Original APR = daily farm return(%)*365
Original APR, this is the annual single return with the daily farm return above.
Daily stake return(%) = xToken Price difference in 24 hours/Initial xToken Price.
Daily stake return is the price difference in 24 hours for xToken, for example, the initial 1 xDIFF worthes 1 DIFF and after 24 hours, 1 xDIFF worthes 1.2 DIFF. So the Daily stake return(%) will be 20%. The xDIFF price will increase because the DIFF stake pool is accumulating DIFF token.
Estimated Stake APY = 364 * 365 * Daily farm return(%) * Daily stake return(%)/2
The auto-stake logic is similar to auto-compounder, the difference is that the auto-stake will stake your reward token instead of selling it. So let's do the math, below is a table, the first row is the time, the second row represents how much farm reward earned and the thrid row represents how much stake reward earned during the time. As how we calculate the APY for auto-compounder, we need to consider all the situation and numbers won't change but it will change in fact.
days | 1 | 2 | 3 | ... | 365 |
|---|---|---|---|---|---|
Daily farm reward | R | R | R | ... | R |
Daily stake reward | 0 | R*Daily stake return(%) | 2*R*Daily stake return(%) | ... | 364*R*Daily stake return(%) |
So when we want to calculate the annual return for stake, we just add all the Daily stake reward and divide it with the total amount we have invested. Then we can get the equation.
Estimated APY = Original APR + Estmiated Stake APY
TVL is short for Total value locked. It represents how much assets invested through the vault in the fiat money base. It will varies because the fiat money value of the underlying assets will change.
This is the asset amount in this vault. Because our strategy will help you to reinvest and make the yield compound, your deposit will continue growing.
When you hover on the data, it will display the current fiat money value to give you some sense of the value of your assets in the vault. But this number will vary because of the fiat money price of the underlying asset will change.
It shows that what reward token you will get.
Boost APR on EvmoSwap is sweet and they follow the veEMO/boosted reward structure from Curve Finance. This is a great innovation that the reward will be boosted with holding veEMO. More veEMO will bring you a higher boosted reward.
This strategy will boost depositors' reward, by locking a small portion of EMO earned to accrue veEMO. Currently every time the strategy harvests the reward back, the contract will receive 20% from it, 15% of the EMO will be locked to get more veEMO to help the APR stay boosted, and Earnmos will gain the other 5% as commission to cover some of the cost.
And EvmoSwap team will grant initial EMO to bootstrap the strategy.
It will benefit all the depositors who don't have enough numbers of EMO to receive boost reward.
This strategy will help you earn more reward token. The EMO reward has a 4 weeks vest which means that when you want to receive any of your EMO reward, you need to harvest firstly, it will start vesting at the same time of each week and you can claim full reward after 4 weeks of that time. Earnmos will help with the harvest, and just wait for the vest complete then claim the reward.
Here is an example, let's say you join the strategy vault at week0.
If you withdraw before the end of week1, you cannot earn the reward generated in week0 and week1. It means that you must stay at the vault for the whole week, then you can earn the reward generated in that week or you cannot earn anything.
If you stay in the vault for the whole week1, you can get the reward generated in that week. However, you need to claim your reward after the vesting period ends.
Last modified 1yr ago