How does one calculate the variable APY for a given deposit amount?
- Aave Protocol
- Aave Pool Aave
How does one calculate the variable APY for a given deposit amount? All I see in the docs are how to calculate the amount at a moment in time, but I figure if you deposit say $10M of an asset, the APY will change?
This is the function is used to compute the new supply and Aave borrow rates (APR) after a transaction: https://github.com/aave/aave-v3-core/blob/e46341caf815edc268893f4f9398035f242375d9/contracts/protocol/libraries/logic/ReserveLogic.sol#L167, you can convert these to APY using the formula given here: https://docs.aave.com/developers/v/2.0/guides/apy-and-apr