👓Precise APY calculations

General (Commonly used formulas)

User’s reward allocation for a singular position

$$R_{D\%} = \frac{C_x}{\sum_{n=1}^{users}C_n} \\\ \\C_x = T \cdot M$$

$\\\textbf{Where:}\\R_{D\%} \; -\; allocation \; of \; rewards \; for \; the \; user \; X's \; position\\C_x, C_n - \; contribution \; of \; the \; user \; X,\; N \\users \; - \; amount \; of \; positions \; in \; the \; Policy \; Book\\T \; - \; user \; X's \; staked \; funds \; of \; the \; position\\M \; - \; user \; X's \; multiplier \; of \; the \; position$

User’s yearly rewards for position X

$$R_x= RPB \cdot BPY \cdot R_{D\%}$$

$\\\textbf{Where:}\\R_x - \; yearly\; rewards \; for \; the \; user \; X's \; position\\RPB \; - \; Policy \;Book's \; reward \; per \; block\\BPY \; - \; blocks \; in \; a \; year\\R_{D\%} \; - \; allocation \; of \; rewards \; for \; the \; user \; X's \; position$

Policy Book X reward multiplier calculation

Where: UR - Utilization Ratio RM - Reward Multiplier

These constants have been skipped in the formulas for clarity's sake. Base RM = 1 Min. RM = 0.15 Max. RM = 2 Risky UR = 85% Moderate UR = 50%

$$UR < 50\% \implies RM_x=\frac{UR-1\%}{50\%}*(1-0.15)+0.15$$

$$50 \%< UR < 85\% \implies RM_x=1$$

$$UR > 85\% \implies RM_x= 1+\frac{(2-1)*(UR-85\%)}{100\%-85\%}$$

Policy Book X reward allocation calculation

$$R_{P\%} = \frac{RM_x \cdot CPIP_x}{\sum_{n=1}^{pools}(RM_n \cdot \ CPIP_n)}$$

$\\\textbf{Where:}\\R_{P\%} \; - \; allocation \; of \; rewards \; for \; the \; Policy \; Book\; X\\RM_x \; - \; Reward \; Multplier \; of \; the \; Policy \; Book \; X\\CPIP_x \; - \; staked \; DEINxCover \; in \; Policy \; Book \; X\\pools \; - \; number \; of \; whitelisted \;pools$

Underwriting Position APY

$$APY_x = \frac{R_x\cdot DEIN_{price}}{T_x}$$

$\\\textbf{Where:} \\R_x \; - \; yearly \;rewards \; for \; the \; position \; x\\T_x \; - \; staked \; funds \; in \; the \; position \; x\\DEIN_{price} \; - \; price \; of \; DEIN$

Underwriting Max (General) APY

This is the APY used on general Policy Book views. It's an estimation of the biggest possible return, it assumes the minimal investment and longest staking duration.

$$\\APY_{max} = \frac{R_x \cdot DEIN_{price}}{T_x}$$

$\\\textbf{Where:}\\R_x \; is \; calculated \; for \; C_x = 500 \\T_x = 100 \\DEIN_{price} - \; price \; of \; DEIN$