APR Calculation Method

The vertical axis of all graphs in punodwoɔ represents APR (annualized yield).

APR for borrowers and lenders is calculated using the following formulas respectively.

Annualized reward amount for borrowers = baseTrackingBorrowSpeed / 10^15 × 60 × 60 × 24 × 365 × PND unit price
Borrow Reward APR = Annualized reward amount for borrowers / Total borrows × 100

Annualized reward amount for lenders = baseTrackingSupplySpeed / 10^15 × 60 × 60 × 24 × 365 × PND unit price
Deposit Reward APR = Annualized reward amount for lenders / Total deposits × 100

APR changes due to fluctuations in the variables in the above formulas (baseTrackingRewardSpeed for borrows and deposits for any pool, total amounts, and PND unit price).

Conversely, the values shown in the graphs are the values assuming these variables remain at current levels for one year without deviation.

By multiplying APR by your borrowed or deposited base assets, you can calculate interest or rewards under the above assumption.

When the CJPY pool's interest rate APR for borrowers is 4.109% and reward APR is 0.543%, effective borrow APR is 4.109 - 0.543 = 3.566%, and borrow interest is incurred. When the above variables fluctuate and interest rate APR and reward APR become equal, when effective borrow APR becomes 0%,

the state where interest is offset by rewards is achieved.