APY

Underlying APY

Underlying APY represents the 7-day moving average yield rate of the underlying asset. This approach allows a more accurate indication of the underlying yield over a period of time, which can help traders to better estimate the Future Average Underlying APY.

Implied APY

Implied APY is the market consensus of the future APY of an asset. This value is calculated based on the ratio of the price of YT to PT and the formula is shown below.

When used in conjunction with the Underlying APY, Implied APY can be used to establish the relative valuation of an asset such as YT and PT at their current price, and help traders determine their trading strategies.

The value of Implied Yield is numerically equivalent to the to Fixed Yield APY.

Fixed APY

Fixed APY is the guaranteed yield you will receive by holding PT. This value is numerically equivalent to the Implied APY.

Long Yield APY

Long Yield APY is the approximated return (annualized) from buying YT at the current price, assuming underlying APY remains constant at its current value.

This value can be negative, meaning that the total value of all the future yield based on the Underlying APY will be less than the cost of buying YT.