How to calculate APY?
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How to Calculate Total APY in UniFarm?

Having trouble calculating the total APY in UniFarm? Don’t worry we’ve got your back! We have created this guide after constant iteration based on user input. We hope this helps you better understand the APY calculations on UniFarm.

To begin, we must establish a few assumptions in order to make this easy for any stakeholder, old or new.

Let’s consider a scenario. There are 5 tokens available in the upcoming pool. Here are the token distribution details:

COMPANYTOKENTOKEN PRICE ($)TOKEN REWARDSTOKENS STAKED
Company AToken A$1.0025,00010,000
Company BToken B$0.5050,00020,000
Company CToken C$0.3075,00015,000
Company DToken D$0.5050,00030,000
Company EToken E$1.0025,00015,000
Token Distribution Table
Note: When we start the pool, we freeze the dollar value of each token.

The pool is going to last a total of 90 days.

What is the Method By Which UniFarm Works?

Let’s assume that you decide to stake Token A (as an example – for the calculation going forward in this blog).

WEEK 1: You exclusively farm Token A.

WEEK 2: You farm Token A and Token B.

WEEK 3: You farm Token A, Token B, and Token C.

WEEK 4: You farm Token A, Token B, Token C, and Token D.

WEEK 5: You farm Token A, Token B, Token C, Token D, and Token E.

How Many Tokens Are You Going to Earn?

UniFarm provides you with the flexibility to choose which token you would like to begin staking and farming within the available pool. As time progresses, you will earn multiple token rewards during the lifetime of the pool.

Assuming that you stake Token A.

From Table 1, you can see Company A has contributed 25,000 Tokens to the rewards pool.

The pool is live for 5 projects. So, for the long-term interest, the rewards are distributed equally across each project wrt the timeline of the pool.

Reward distribution (No. of tokens): 25,000/5 = 5,000

Now, if you stake Token A, you earn Token A for 90 days. To calculate the daily reward earned 5,000 must be divided by 90.

Total Token A’s Daily Reward (No. of tokens): 5,000/90 = 55.55

As a consequence, the daily token incentive will be earned by all Token A stakeholder participants, individually.

Note: During the entire duration of the pool, the day you start staking your tokens will be considered the beginning of your staking period.

Let us now calculate your Stake Ratio.

Assume you have staked 100 Token A.

From Table 1: Total Number of Token A staked = 10,000

Note: Divide the number of tokens staked by the total number of TOKEN A staked to get the STAKE RATIO.
Stake Ratio = No. of Token A Staked by You/Total Token A Staked
                      = 100/10,000
                      = 0.01

Token A: Your Reward (From WEEK 1)

From the above calculation we gathered that:

Reward distribution (No. of tokens): 25,000/5 = 5,000

Total Token A’s Daily Reward (No. of tokens): 5,000/90 = 55.55

Let us calculate the rewards earned by you on a daily basis:

Your Token A Daily Rewards = Stake Ratio x Total Token A's Daily Rewards
                                                       = 0.01 x 55.55
                                                       = 0.5555

For the next 90 days, your daily Token A reward is 0.5555 tokens.

From Table 1, we gather that the price of Token A is $1

Therefore, if you stake Token A for 90 days, you will receive:

Daily reward x Number of Days x Price of the token: 0.5555 x 90 x 1 = $49.995

Token B: Your Reward (From WEEK 2)

From Table 1, we see that Company B has contributed 50,000 Tokens to the reward pool.

Again, in order to distribute the rewards to each project, we must divide it by 5.

Reward distribution (No. of tokens): 50,000/5 = 10,000

Note: Because you earn Token B from WEEK 2, you will earn it for 83 days only.

Total Token B’s Daily reward (No. of tokens): 10,000/83 = 120.48

Your Token B Daily Rewards = Stake Ratio x Total Token B's Daily Rewards
                                                       = 0.01 x 120.48
                                                       = 1.2048

For the next 83 days, your daily TOKEN B reward is 1.2048 tokens.

From Table 1, we gather that the price of Token B is $0.50

Therefore, if you stake Token B for 83 days, you will receive:

Daily reward x Number of Days x Price of the token: 1.2048 x 83 x 0.50 = $49.999

Token C: Your Reward (From WEEK 3)

From Table 1, we see that Company C has contributed 75,000 Tokens to the reward pool. 

Again, in order to distribute this amount to each project, we must divide it by 5.

Reward distribution (No. of tokens): 75,000/5 = 15,000

Note: Because you earn Token C starting in WEEK 3, you will earn it for 76 days only.

Total Token C’s Daily Reward (No. of tokens): 15,000/76 = 197.36

Your Token C Daily Rewards = Stake Ratio x Total Token C's Daily Rewards
                                                       = 0.01 x 197.36
                                                       = 1.9736

For the next 76 days, your daily TOKEN C reward is 1.9736 tokens.

From Table 1, we gather that the price of Token C is $0.30

Therefore, if you stake Token C for 76 days, you will receive:

Daily Reward x Number of Days x Price of the token: 1.9736 x 76 x 0.30 = $44.99

Token D: Your Reward (From WEEK 4)

From Table 1, we see that Company D has contributed 50,000 Tokens to the reward pool. 

Again, in order to distribute this amount to each project, we must divide it by 5.

Reward distribution (No. of tokens): 50,000/5 = 10,000

Note: Because you earn Token D starting in WEEK 4, you will earn it for 69 days only.

Total Token D’s Daily Reward (No. of tokens): 10,000/69 = 144.92

Your Token D Daily Rewards = Stake Ratio x Total Token D's Daily Rewards
                                                       = 0.01 x 144.92
                                                       = 1.4492

For the next 69 days, your daily TOKEN D reward is 1.4492 tokens.

From Table 1, we gather that the price of Token D is $0.50

Therefore, if you stake Token D for 69 days, you will receive:

Daily Reward x Number of Days x Price of the token: 1.4492 x 69 x 0.50 = $49.99

Token E: Your Daily Reward (From WEEK 5)

From Table 1, we see that Company E has contributed 25,000 Tokens to the reward pool.

Again, in order to distribute this amount to each project, we must divide it by 5.

Reward distribution (No. of tokens): 25,000/5 = 5,000

Note: Because you earn Token E starting in WEEK 5, you will earn it for 62 days only.

Total Token E’s Daily Reward (No. of tokens): 5,000/62 = 80.64

Your Token E Daily Rewards = Stake Ratio x Total Token E's Daily Rewards
                                                       = 0.01 x 80.64
                                                       = 0.8064

For the next 62 days, your daily TOKEN E reward is 0.8064 tokens.

From Table 1, we gather that the price of Token E is $1

Therefore, if you stake Token E for 62 days, you will receive:

Daily reward x Number of Days x Price of the token: 0.8064 x 62 x 1 = $49.99

How Do You Determine Your Total APY?

Before we begin computing the total APY of the tokens you farmed, there is one thing we need to reiterate —

“When we start the pool, we freeze the DOLLAR value of each token.”

Assume the tokens’ DOLLAR value is locked at the time of pool start.

This is how your reward structure for the pool looks like, if you are staking for a period of 90 days:

TOKENS($) TOKEN PRICE
(a)
REWARDS/DAY
(b)
DAYS
(c)
TOTAL REWARDS
(d) = a*b*c
Token A$1.000.555590$49.99
Token B$0.501.204883$49.99
Token C$0.301.973676$44.99
Token D$0.501.449269$49.99
Token E$1.000.806462$49.99
TOTAL$244.95

Key Points

  • The number of tokens staked is 100 (Token A)
  • The token has a DOLLAR value of $1.00.
  • You staked a total of $100.
  • The total DOLLAR worth of the rewards is $244.95.

Your Total APY

APY = (Your Total Reward for 90 days x 4 / Your Total Stake Worth) x 100
          = (244.95 x 4 / 100) x 100
          = 979.8%

Note: Since we are annualizing the yield your reward is multiplied by 4.

Your total APY is 979.8%

NOTE: If the APY falls below the minimum APY that we have promised, we will introduce additional $ORO tokens after 8 weeks of farming to meet the required APY.


UniFarm is a one-of-a-kind staking solution that brings together the finest projects in DeFi to offer value to investors. UniFarm enables you to invest one token but receive several high-value tokens, thus your returns are automatically diversified in addition to a fantastic APY.

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