Strategy APY and savUSD APY
Strategy APY and savUSD APY
The Avant frontend displays two key yield metrics—Strategy APY and savUSD APY—to provide users with insight into the performance and estimated returns of the protocol. Below, we detail how these values are calculated, displayed, and why they may differ.
How They Are Displayed
In the Avant dApp, the APY values are shown as follows:
Strategy APY: Example: 14.66% Description: "The strategy’s yield produced in the previous week, which is currently being distributed." This reflects the yield generated by the strategy over the prior week, which is now being distributed to participants.
savUSD APY: Example: 14.92% Description: "The current estimated yield for savUSD holders, based on the latest transaction." This represents the real-time estimated annualized yield for savUSD holders, calculated from the most recent staking activity.
Why They Differ
The difference between Strategy APY and savUSD APY arises from several dynamic factors:
Staking Activity: Changes in the total funds staked or unstaked during the current week can influence the savUSD APY, as it reflects real-time estimates based on the latest transactions. If more users stake during a certain week, the yield distributed during the previous week will be "diluted". The opposite is also true: when the amount of stakers shrink, the same yield is distributed to less users, thus "boosting" the yield.
TVL Fluctuations: Variations in Total Value Locked (TVL) from the previous week impact the Strategy APY, which is a backward-looking metric, while savUSD APY adjusts to current conditions.
Timing Within the Week: The point at which staking or TVL changes occur during the week can create temporary discrepancies between the two yields.
Over an extended period, these APYs are expected to align as short-term fluctuations smooth out, assuming consistent protocol performance and participation.
For the most current APY values and frontend implementation, visit the live dApp at: Avant Frontend.
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