# 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`

<figure><img src="/files/ZpQ5s4uN0YH2ncp4Iz7d" alt=""><figcaption><p>Total APY for borrowing and lending yUSDC</p></figcaption></figure>

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