APR: A Day by Day Breakdown
The following shows day by day APR & key fee events for a given mASSET under stable market conditions.
For illustrative purposes we will look at the first 42 days for a $900 UST investment on mCOIN.
The following assumes a Target Collateral Ratio of 200%
The following assumes there is no material price premium or discount between mCOIN & the oracle price
The following assumes the short & long farm APR as well as $MIR & $SPEC token price remains constant for first 42 days
The following also assumes low volatility for mCOIN price for the first 42 days (volatile assets will trigger rebalances which will eat into APR)
Note:
Listed APRs above are proportionally weighted. For example, Anchor Earn at time of publication was ~19.5% but we’re displaying it here as 12.93% to reflect the ⅔ of the investment that is in Anchor Earn.
Day by Day APR Breakdown:
Day 0: -0.16% APR
Immediately upon opening the position you will have a slightly negative balance primarily due to the ~0.3% TerraSwap fee on short sale proceeds & the long position.
Day 0 = $900 - short sale TS fee - long buy TS fee
Day 1-13: +18.28% APR
Not yet full APR potential, only yield is from short farm (+5.35%) & Anchor deposit (+12.93%). By Day 4 the negative position should be reversed.
Day 13 Value = Day 0 Value x ((5.35% + 12.93%) * 13/365)
Day 14: +18.28% APR - Spec Fee
Proceeds from short sale arrive (less the TerraSwap fee from Day 0) & are married with long position to initiate long-farm, spectrum fee incurred
Day 14 Value = Day 13 Value + 1 Day of Short & Anchor Yield - Spectrum Fee
Day 15-42: 39.68% APR
Long-farm is live & thus the DN strategy is running on its full APR potential.
Day 42 Value = Day 14 Value + Day 0 * ((5.35% + 12.93% + 21.4%) * 28/365)
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