Points APR

How We Calculate Implied APR for Points

Although Points don't have an official APR, we can derive an implied APR by examining what users are willing to pay for Points "yield" in the Pendle & Spectra YT markets. The following formula demonstrates our method for calculating the implied APR for Points:

$$APR_{implied} = \text{Looping Multiplier} \times \left(\frac{YT_{price}}{\text{Points Multiplier} \times \text{DTE}}\right) \times 100 \times 365$$

Implied APR Formula Terms Defined:

$$\text{Looping Multiplier} = \text{Loop Factor} \times \text{Points Multiplier}$$

$$YT_{price} = \text{YT}  Oracle_{price}$$

$$\text{DTE} = \text{YT Days Until Expiry}$$

By combining the Levered APR stemming from Native Yield and the Points APR, we can calculate the Total Looped APR as follows:

$$\text{Total Looped APR} = \text{Native Yield APR} + \text{Points APR}$$

To convert APR to APY, apply the continuous compounding formula: $APY=e^{APR}−1$

Example Calculation of APR ynETH with EigenLayer Points and Yieldnest Seeds

$$APR_{implied} = \text{Looping Multiplier} \times \left(\frac{YT_{price}}{\text{Points Multiplier} \times \text{DTE}}\right) \times 100 \times 365$$

ynETH Points Implied Yield is a sum of both EigenLayer Points and Yieldnest Seeds

ynETH Vault	Looping Multiplier	Points Multiplier
ynETH 5x	15	3 Yieldnest, 1 EigenLayer