> For the complete documentation index, see [llms.txt](https://docs.drops.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.drops.co/lending-pools/positions-lending-pool/apy-calculation.md).
# APY Calculation
What sets the Positions pool APY apart is the ability to borrow vault shares. This feature allows lenders to enjoy a guaranteed supply APY even when no assets are borrowed. It also minimizes token incentives as a portion of the yield is derived from the vault.
Borrowers, on the other hand, still receive competitive rates on their long-tail assets.
### Total APY calculation
Total APY is made from vault APY and interest rate. \
It can be calculated in the following way:\
\
**Supply APY**
`(1 + Vault APY) * (1 + Supply interest APY) -1`
**Borrow APY**
`(1 + Vault APY) * (1 + Borrow interest APY) -1`
Total APY for borrowing and lending yUSDC
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