# APR

## **APR Overview**

APR (Annual Percentage Rate) in LayerBank represents the net yield or cost of your position.\
It updates in real time based on **market utilization**, interest models, and rewards.

***

### **Components**

* **Supply Base APR** – Interest earned for supplying assets. Rises as utilization increases.
* **Borrow Base APR** – Interest paid for borrowing assets. Increases with utilization.
* **Underlying Yield** – Yield from LSTs or RWA yield-bearing tokens (e.g., staking rewards, off-chain yield).
* **Incentive Rewards APR** – Temporary incentives or foundation rewards (e.g., liquidity mining campaigns).
* **Looped APY** – Effective yield when leverage is applied (includes both supply yield & borrow cost).
* **Future $ULAB Rewards** – $ULAB emissions will be added for suppliers and borrowers and reflected in Total APR.

***

### **Looped Net APY Formula**

$$
LoopedNetAPY=L×(U+Sb​+Sr​+I)−(L−1)×(Bb​−Br​)
$$

Where:

* **L** = leverage multiplier
* **U** = underlying yield (LST/RWA yield)
* **S\_b** = supply base APR
* **S\_r** = supply reward APR
* **B\_b** = borrow base APR
* **B\_r** = borrow reward APR

> **Tip:** Enable **E-Mode** to safely increase leverage (higher **L**) and boost yield within risk limits.

***

### **Notes**

* **Underlying Yield:** Some assets accrue yield on mainnet and must be unstaked/claimed manually.
* **Incentive Rewards:** May be time-limited and differ by chain or campaign. Always check active campaigns.
* **$ULAB Rewards:** Will be added soon, further boosting total APR.
* **Net APR can turn negative** if borrow costs exceed total yield — monitor utilization before applying leverage.


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