The rate you see on the platform is APY (Annual Percentage Yield). You obtain APY in full if you hold an asset on your Interest Account and don’t make any withdrawals within a calendar year.
Annual Interest – Web platform
We convert compound APY to simple APR (Annual Percentage Rate) using this math formula to get the daily rate.
How the calculation works
We execute all the Scheduled withdrawals at the fixing time of 14:00 UTC.
At the same fixing time, we calculate Daily Accrual using the following formula:
Daily Accrual = Fixing Balance * APR / 365
Fixing Balance is the balance on your Interest Account taken after completing the Scheduled withdrawals. The balance should be the minimum amount to receive interest.
Note: The daily accrual transaction stays at the Scheduled status until the event of the monthly compound.
Interest Account Transactions – Web platform
We sum up all the scheduled Daily Accruals and credit aggregated interest to your Interest Account balance (even if you have withdrawn all the funds). Then we calculate further daily accruals based on the new balance of your Interest Account. This combination of monthly earnings gives a compound effect.
Note: The payout time is 15:00 UTC on the first day of the month.
Use cases samples
You deposit €1,000 to your Interest Account and hold it for a year without withdrawing funds. 365 days later, you will have €1,103 on your balance without staking CLT (a 10.3% rate) and €1,123 with the maximized rate (a 12.3% rate).
You deposit €1,000 to your Interest Account and hold it for two months (30 days each). Your daily accrual for each day of the first month will be €0.28, which makes €8.4 for a month. Your balance after 30 days is €1,008.4 – this is our new fixing balance. The daily accrual for the second month will be €0.284, which makes €8.52 for 30 days.