Understanding bfUSD APY

This page explains how bfUSD yield is expressed as APY and how to interpret it for bfUSD vault shares (e.g., hbfUSD, pbfUSD). It is intended as a conceptual guide for developers and integrators.

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Real Yields APY

Real Yields APY represents the yield generated by the strategies. Depending on the Pulsar and Horizon strategies, the generated yields are sent to the vault after deducting insurance fees (Horizon only) and other fees. The vault share price ratio is then updated, and the yield from this ratio update is reflected as Real Yields APY.

As the name suggests, Real Yields APY represents the yield generated from historical ratio changes (time period: YTD). This yield is denominated in bfUSD.

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Tokens APY

BitFi currently provides token subsidies in the form of BFI tokens.

Reward tokens are calculated once per Epoch and allocated to each user based on their shares. We calculate the quantity and corresponding USD value of BFI tokens to be distributed based on a certain market capitalization. This is displayed as Tokens APY in the dApp.

Tokens APY Calculation Method

Formula:

$$\text{TokensAPY}=\frac{\text{DailyRewards}}{\text{SharesTotalSupply}\times \text{CurrentSharesPrice}}\times 365\times 100$$

Where:

• $\text{DailyRewards}$ = Daily token rewards in USD value
• $\text{SharesTotalSupply}$ = Total supply of vault share tokens
• $\text{CurrentSharesPrice}$ = Current price of vault shares

How to Claim Tokens APY Rewards

After the campaign ends, we will calculate reward distribution based on random snapshots of users' pbfUSD and hbfUSD holdings throughout past Epochs.

User Claimable Amount:

$$\text{UserClaimableAmount}=\text{TotalRewards}\times \frac{\text{User’sTotalShareBalance}}{\text{All Users’TotalShareBalance}}$$

Rewards will be distributed after the campaign ends.

Boost APY

Pulsar users can additionally enjoy Boost APY benefits. Boost APY comes from the insurance fees generated by the Horizon strategy.

Periodically, BitFi will uniformly deposit the insurance fees generated by the Horizon strategy into the vault as Boost Yields rewards for Pulsar token holders.

Pulsar token holders will receive Boost Yields rewards proportionally based on their time-weighted shares, calculated according to their holding duration and holding amount.

When claiming rewards, your Boost Yields rewards will be converted into Pulsar bfUSD.