Yield & APY

arcUSD Yield Distribution (Rebase)

arcUSD's yield is distributed via rebase, meaning the amount of arcUSD held in a wallet will increase over time as yield accrues to the token.

The distribution mechanism is designed to smooth out returns and also ensure the protocol isn't inadvertently overpaying.

The portfolio surplus (generated yield) is quantified by taking 1-minute snaps of the portfolio, using the minimum surplus over last 24 hours as the total for additional distribution calculations.
On any given rebase, only 25% of the minimum portfolio surplus is distributed back to users. The rest gets rolled forward, reducing jumpiness in the returns.
If the surplus is flagged as unusually high, we do not automatically rebase. Instead, this triggers an internal review. The rebase level set to tigger this review is variable, currently set at 0.10% portfolio value for an individual rebase.
Rebases are timed to randomly distribute once every 12 - 24 hours.

To prevent additional user activity that could be used to game the system:

Users cannot stake or unstake for ~2 minutes during an active rebase, this function is disabled.
Users don't start accruing points unless they've held their PTa position for >24hr, ensuring a rebase was missed. Any transfer of PTa resets points accrual.

Calculating APY

Individual rebases are smoothed out using the process above, however they're still a noisy way of reporting arcUSD APY and could be misleading.

The reported arcUSD APY calculation takes a more comprehensive approach to providing a reliable figure to users.

Calculation methodology:

Rebases over last 7 days are scanned and the rebase return for each is calculated.
Only unstaked arcUSD holders receive the rebase, so we calculate the by adjusting for tokens deposited into the PTa staking vault at each block height over last 7 days.
The protocol yield figure is compounded and annualized into an APY.
We use the current percent of PTa staked, which updates on the website every 1 mintue, and apply that adjustment to the smoothed protocol yield, in order to calculate current arcUSD APY.

PreviousarcUSD NextMint & Redeem

Last updated 10 months ago

arcUSD Yield Distribution (Rebase)

arcUSD's yield is distributed via rebase, meaning the amount of arcUSD held in a wallet will increase over time as yield accrues to the token.

The distribution mechanism is designed to smooth out returns and also ensure the protocol isn't inadvertently overpaying.

The portfolio surplus (generated yield) is quantified by taking 1-minute snaps of the portfolio, using the minimum surplus over last 24 hours as the total for additional distribution calculations.
On any given rebase, only 25% of the minimum portfolio surplus is distributed back to users. The rest gets rolled forward, reducing jumpiness in the returns.
If the surplus is flagged as unusually high, we do not automatically rebase. Instead, this triggers an internal review. The rebase level set to tigger this review is variable, currently set at 0.10% portfolio value for an individual rebase.
Rebases are timed to randomly distribute once every 12 - 24 hours.

To prevent additional user activity that could be used to game the system:

Users cannot stake or unstake for ~2 minutes during an active rebase, this function is disabled.
Users don't start accruing points unless they've held their PTa position for >24hr, ensuring a rebase was missed. Any transfer of PTa resets points accrual.

Calculating APY

Individual rebases are smoothed out using the process above, however they're still a noisy way of reporting arcUSD APY and could be misleading.

The reported arcUSD APY calculation takes a more comprehensive approach to providing a reliable figure to users.

Calculation methodology:

Rebases over last 7 days are scanned and the rebase return for each is calculated.
Only unstaked arcUSD holders receive the rebase, so we calculate the by adjusting for tokens deposited into the PTa staking vault at each block height over last 7 days.
The protocol yield figure is compounded and annualized into an APY.
We use the current percent of PTa staked, which updates on the website every 1 mintue, and apply that adjustment to the smoothed protocol yield, in order to calculate current arcUSD APY.