1 replies, 1393 views, 3 likes
The discussion, initiated by Curubas, revolved around the complexities of interest calculation in dynamic financial scenarios, specifically questioning how 1 USDT interest is calculated in a hypothetical scenario. Sakulstra responded that while APY and APR formulas can theoretically calculate interest, the dynamic nature of utilization and rate makes them less practical, suggesting the use of growth index SDKs and tracking the index on the accounts last action per asset for a more accurate calculation.
The discussion was initiated by Curubas who raised a question about the calculation of interest in a hypothetical scenario where 10 USDT is supplied and 11 USDT is withdrawn after a year. They were curious about how the 1 USDT interest is calculated and provided a real-world transaction example for further understanding1. In response, Sakulstra explained that the interest calculation theoretically follows the APY and APR formula. However, they pointed out that this formula might not be practical due to the highly dynamic nature of utilization and rate2.
Sakulstra further suggested that using the growth index SDKs is a more realistic scenario, as it takes into account flash and portal fees. They also mentioned that the pool tracks the index on the accounts last action per asset. This, together with the current index, can provide the archived rate2. This discussion provided valuable insights into the complexities of interest calculation in dynamic financial scenarios, highlighting the importance of understanding the underlying mechanisms and the potential limitations of theoretical formulas.
In conclusion, while the APY and APR formula can provide a theoretical basis for interest calculation, the dynamic nature of utilization and rate makes it less practical in real-world scenarios. Instead, using growth index SDKs and tracking the index on the accounts last action per asset can provide a more accurate and realistic calculation.
Posted a year ago
Last reply a year ago
Summary updated 2 months ago
Last updated 09/12 13:52