iBGT rewards
Explains how Annual Percentage Rate (APR) is calculated for deposit rewards in Infrared vaults. The APR represents the estimated annual return based on real-time reward distributions and market data.
For further information please refer to the iBGT education page.
APR calculation
For Proof of Liquidity vaults and iBGT, the APR is calculated using the reward rate reported by the smart contract. This rate represents the number of reward tokens distributed per second.
How the APR is calculated
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Retrieve the reward rate from the smart contract.
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Calculate the estimated total rewards over one year by scaling the reward rate:
Annual rewards=rewardRate × 60 × 60 × 24 × 365 -
Convert rewards into USD value using the current market price of the reward token.
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Determine the total deposited value in USD by multiplying the amount of deposited tokens by their respective token price.
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Calculate APR using the formula:
APR = Annual reward value(USD) / Total deposited value(USD)
APR update frequency
The APR is recalculated every 20 minutes, based on:
- The latest total deposited supply
- Reward token price
- LP token price
- Current reward rate
Summary
| Product | Reward source | Update frequency | Calculation basis |
|---|---|---|---|
| PoL & iBGT | Reward emissions | Every 20 minutes | Live reward rate, token price, and deposited value |