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_4 be the 4 weeks in chronological order.

Let final tokenPrice at end of week wiw_i as fif_i and start price as sis_i

gi=(fiāˆ’si)sig_i = \frac{(f_i - s_i)}{s_i}
yield=(āˆi(1+gi))\texttt{yield} = (\prod\limits_{i} (1+g_i))
APY=(1+yield)NumWeeks/4āˆ’1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks/4}} - 1

Where NumWeeks=52.1429\texttt{NumWeeks} = 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=totalPremiumCollectedtotalFundsāˆ’1 \texttt{yield} = \frac{\texttt{totalPremiumCollected}}{\texttt{totalFunds}} -1
APY=(1+yield)NumWeeksāˆ’1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks}} - 1

Last Week Yield (APY)

It is annualised performance based on last week. Let tokenPrice on last to last friday be f1f_1 and tokenPrice on last friday be f2f_2.

yield=f2āˆ’f1f1āˆ’1\texttt{yield} = \frac{f_2 - f_1}{f_1} - 1
APY=(1+yield)NumWeeksāˆ’1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks}} - 1

Historic Yield (APY)

Annualised average yield from inception (in the money weeks are included).

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