Detailed Breakdown
Last updated
Last updated
Traditional systems with fixed borrowing costs often do not account for variable asset performance. With Vaultka, a better-performing linked vault translates to higher rewards for lenders.
where denotes the total rewards from all positions in the past week
Asset performance can be volatile. The pay-in-advance model solidifies upcoming rewards before they materialize, distributing them to lenders on an hourly basis.
Lenders benefit from the upside without the associated risks of underperformance. Vault users assume the risks, ensuring lenders always receive positive rewards.
If the actual reward from the previous week exceeds the base reward, the surplus (after adjusting for any credits/debits in the Vaultka redistributor) is shared as a bonus. (Scenario 1)
Should the past week's rewards be lower than the base reward, the lending pool still receives the base reward. Any shortfall is recorded against the Vaultka redistributor balance. (Scenario 2)
The total Reward will be adjusted based on the balance of the redistributor (scenario 3)
GM Leverage (v2-WATER)
Annotations:
APR:
Determining Actual Reward:
where denotes the total rewards from all positions in the previous epoch SD represents the daily standard deviation in percentage
denotes the total rewards from all positions in the previous quarter
denotes the total rewards from all positions in the past week
represents the daily standard deviation in percentage
stands for the total value locked from realized positions
signifies the change in unrealized positions
is the mathematical representation for summation