Expected interest earnings for Month/Week/Day calculated incorrectly.
dmbutalsodm opened this issue · comments
It looks like the Monthly/weekly/daily earnings are simply calculated by taking the expected interest in APY for the year and dividing by 12/52/365. This is incorrect as the interest rate displayed is APY, meaning it compounds/accelerates over time
meaning just dividing is going to make the interest appear linear, which is not how it works in reality.
For example, if my balance is $1000, and the APY is 19.49%, the APR is 17.78%, which means the daily earnings should be $0.487 ((1000*.1778)/365).
Instead, the earn page will show $0.534 ((1000*.1949)/365), making it off by a significant margin.
Hey!
Thanks for reaching out. We are planning to have an upgrade on the actual contract level interest compounding mechanism changes in our next major upgrade (https://github.com/Anchor-Protocol/money-market-contracts/tree/dev/v1.1) , and will modify the webapp to calculate expected interest earned accordingly.