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
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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