APY Calculation
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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 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
