How to calculate estimated APR, Debt ratio, and Liquidation price Leveraged APR = Leveraged liquidity providing trading fee APY + Yield farming APR - Borrowing APY. cappedDebtRatio = 0.95 tokenMaxLeverage = borrowFactor / (borrowFactor - (collateralFactor * cappedDebtRatio))
totalAPY = ((farmingAPR + tradingFeeAPY) * tokenMaxLeverage) + (totalRewardAPY * (tokenMaxLeverage - 1)) - (tokenBorrowApy * (tokenMaxLeverage - 1))
https://github.com/ClaudeF4491/defi_leveraged_yield_farming_sim/blob/main/farming_simulator.ipynb
Equations:
Rough equation to calculate leveraged Yield Farming returns without factoring in compounding, rewards, fees, etc:
E = LP(1 + r_e/n)^(nt) - (L-1)P(1 + r_b/n)^(nt) where:
E: final equity L: Leverage amount (1, or >2) P: Initial principal r_e: earning interest rate (such that 0.5=50%) r_b: borrow interest rate (such that 0.5=50%) n: number of times compounded a year, can assume daily (365.25). t: number of years This can be used as a comparison to this sim if you set all rates/fees to zero except trading fees, and no variation.
https://phemex.com/fees-conditions
Trading Parameters
https://www.omnicalculator.com/finance/apy
https://www.bybithelp.com/bybitHC_Article?language=en_US&id=000001850#d
https://learn.bybit.com/investing/apr-vs-apy-crypto/ Some of the current offers on Bybit Savings