Account Position Calculations

It is worth noting that multiple pools should be taken into consideration.

Based on the implemented Logic for each of the enabled Pools, the account has a unique position:

  • Total deposit balance,

  • Max loan limit,

  • Loan balance,

  • Loan limit used,

  • NetAPY,

  • Daily.

Total Deposit

Represents a sum of user deposit balances across all pools, denominated in USD.

user.total_deposit = SUM p=1..n ( deposit_balance[p] * asset_price[p] )

Pool Loan to Value

Each Pool has a unique Loan to Value (“LTV”) defining how much of deposited funds are accounted as provided collateral. For example, when LTV is 0.8, it means that for each $100 USD deposited, the max loan limit is $80 USD.

Max Loan Limit

The Max Loan Limit represents the value which could be borrowed against all provided collateral.

user.max_loan_limit = SUM p=1..n ( deposit_balance[p] * ltv_ratio[p] * asset_price[p] )

Notice the asset_price is set in USD for a given asset.

Loan Balance

The Loan Balance is a sum of all borrowed assets' values across all available pools.

user.loan_balance = SUM p=1..n ( borrow_balance[p] * asset_price[p] )

Loan Limit Used

The Loan Limit Used represents the ratio between the Loan Balance and Max Loan Limit. The expected value is in the 0-1 range.

user.loan_limit_used = loan_balance / max_loan_limit 

Net APY

NetAPY represents the net user interests within the protocol, including all deposited and borrowed assets. It is a decimal representation used only in front-end calculations and does not affect the protocol.

NetAPY = { SUM p=1..n ( deposit_balance[p] * deposit_rate[p] -
- borrow_balance[p] * borrow_rate[p] ) * asset_price[p] } 
/ 
{ SUM j=1..m ( deposit_balance[j] * asset_price[j] ) }

Daily

Daily results represent the NetAPY, denominated in USD, daily, for a given user. Like Net APY, It is used only for frontend purposes.

daily = total_deposit * NetAPY / 365

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