APR & APY Calculation

All vaults have performance indices, which are started from 1.00 and calculated against deposit tokens (sUSD for Put Selling and sETH for Covered Call), and shares are issued against the index.
Total Projected Yield (APY)
Calculated by getting the average of the past 4 week's annualised performance. Average of past four weeks weekly yield (in the money weeks are excluded)
Let w1,w2,w3,w4w_1,w_2,w_3,w_4w1​,w2​,w3​,w4​
 be the 4 weeks in chronological order.
Let final tokenPrice at end of week wiw_iwi​
 as fif_ifi​
 and start price as sis_isi​
​
gi=(fi−si)sig_i = \frac{(f_i - s_i)}{s_i}gi​=si​(fi​−si​)​
yield=(∏i(1+gi))\texttt{yield} = (\prod\limits_{i} (1+g_i))yield=(i∏​(1+gi​))
APY=(1+yield)NumWeeks/4−1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks/4}} - 1APY=(1+yield)NumWeeks/4−1
Where NumWeeks=52.1429\texttt{NumWeeks} = 52.1429NumWeeks=52.1429
, number of weeks in year.
​
This Weeks's Projected Yield (APY)
It is expected annualised performance for current week if options expire out of money. 
It is calculated as
yield=totalPremiumCollectedtotalFunds−1 \texttt{yield} = \frac{\texttt{totalPremiumCollected}}{\texttt{totalFunds}} -1yield=totalFundstotalPremiumCollected​−1
APY=(1+yield)NumWeeks−1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks}} - 1APY=(1+yield)NumWeeks−1
Last Week Yield (APY)
It is annualised performance based on last week. Let tokenPrice on last to last friday be f1f_1f1​
 and tokenPrice on last friday be f2f_2f2​
. 
yield=f2−f1f1−1\texttt{yield} = \frac{f_2 - f_1}{f_1} - 1yield=f1​f2​−f1​​−1
APY=(1+yield)NumWeeks−1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks}} - 1APY=(1+yield)NumWeeks−1
Historic Yield (APY)
Annualised average yield from inception (in the money weeks are included).
V2 Vaults Calculation - HackMD
HackMD
Last modified 7mo ago