APR represents Annual Percentage Rate charged for certain investment with no compounding.
APY(Annual Percentage Yield) takes into account compounding, but APR does not. The more frequently the interest compounds, the greater the difference between APR and APY. Investment companies generally advertise the APY, while lenders tout APR.
B. Then 70% of primary interest is returned in the form of LP token of that respective pool, and 30% in TURK. This 30% worth of profit is calculated in $ equivalent of KLAY, and 5 TURK is given for every 1 KLAY.
A. Initial interest rate is APR=63.94%
B. You deposit 1000 units of asset for a whole month (30 days)
C. At the moment of your withdrawal, the price of your asset is 1.2$, the price of LP token is 5$, the price of KLAY is 0.85$
Then the primary interest is:
Then the final interests are as below:
70% in LP token, the amount of the LP token is: 55.52×1.2×70%÷5≈ 9.32
30% in TURK, the amount of TURK is: 55.52×1.2×30%÷0.85×5≈117.57