Great question!
When Finblox states a specific annual percentage yield - it means that this is the total yield that you will receive by the end of a one-year period. For example, our 15% APY on USDC can be interpreted this way: If you deposited 100 USDC at the start of the year, you would end up with 115 USDC by the end of the year.
This advertised APY cannot and should not be used to imply anything about daily rates. Finblox makes no such statements or guarantees.
If you decide to calculate your daily yield rewards payment, you cannot just divide the APY by the number of days in a year to determine a fixed daily rate. Remember, rewards are compounded and paid daily. A straightforward calculation will not work, as the reward you are receiving is increasing every day.
Eventually, it is these increases that results in a 90% APY after a one-year period.
Here is the formula for APY:
APY = [(1 + r/n )^n] – 1
"r" is the true fixed annual rate
"n" equals the number of compounding periods (in our case, 365 days)
Here is the formula for the yield amount that should be paid daily:
# tokens to be paid as yield = (r /365) ⋅ # tokens held in last period
"r" is the true fixed annual rate you discovered from the last formula for APY, and can be used as a multiplier once converted into a daily rate
Keep in mind that your daily yield payment only takes into account the token balance that has been held in the account for 24 hours or more. This is what is meant by "last period." If you recently deposited tokens less than 24 hours ago, they would not count towards this calculation until the next day.
If you have any questions, concerns, or still feel like there are discrepancies with your daily yield payment - feel free to contact us at [email protected]!