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Explanation for APY APR and ROI

APY rate = Annual Percentage Yield , APR + Compounding Interest

For example , APY for Stables on Midas platform is 11.6%

If you invested $10000 USDC, you will get $10000 * 11.6% = $11160

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APR rate = Annual Percentage Rate , annual rate of return without compound interest taken

To calculate daily return, you MUST convert APY rate to APR rate. A example below:

USDC APY = 11.6% , the APR rate will be 10.98% (Reference from https://www.aprtoapy.com/)

Let's say you are invested 10000 USDC. To get daily return, the formula will be 

AMOUNT * APR rate รท 365 Days = Daily return

10000 x 10.98% รท 365 Days = 3.0082 USDC

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ROI = Return on investment ( ROI has no specific time frame. Thus, when you speak of ROI, you need to additionally specify the time period. For Midas CeDeFi Strategies, "expected Annual ROI" used. One year time frame specified )

 ROI = (Current Value of Investment โˆ’ Cost of Investment) โ€‹ โ€‹/ Cost of Investment *multiply by 100 to get the result in %

 Example:

Chris bought a DeFi token farming LPs at $1.8 in April 2021 and sold it in the April 2022 at the price of $2.61. To calculate the return on this investment, (2.61 - 1.8) / 1.8 x 100 = 45%) by the investment cost $1.8 for a ROI of 45%. 

Disclaimer

 Note that target ROIs are expectations from Midasโ€™ investment team and are not guaranteed. The cryptocurrency ecosystem are extremely volatile and unregulated. The performance of each strategy depends on the market sentiment, pool liquidity, and lending utilization rates. It is different from fixed yield products offering, an investment into these CeDeFi strategies may result in profit or loss 

We recommend that you read and understand the contents of CeDeFi Strategies before investing https://wiki.midas.investments/investment-products/cedefi-strategies