EZ Finance
  • Introduction
  • Overview
    • What's EZ-Fi?
    • Why EZ-Fi is unique?
    • EZ-Fi Links
  • Features
    • Leverage yield farming
      • Leveraged farming risk
      • Long leveraged farming
      • Short leveraged farming
    • Lending
    • Neutral Hedge farming (Soon)
    • Auto-Rebalance Vaults
      • Pseudo-Delta Neutral Strategy
      • PDN Rebalance
  • Knowledge
    • ibTokens
    • Types of pool
    • Benefits of Short/Long Position
    • APR Calculated on EZ-FI
    • Utility
    • Tokenomics
    • Fees
    • Auto-Compound
    • Insurance
  • Liquidation bounty
    • What is Liquidation & Liquidation Bounty?
  • Resources
    • Integration
    • FAQ
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  1. Knowledge

Auto-Compound

EZ-FI will help you reinvest your profit to boost your APY.

LP tokens staked in DEXes will earn profits continuously. Making use of the profit will greatly increase capital efficiency.

The formula to reference is:

APY=(100%+RN)NAPY = (100\%+\frac{R}{N})^NAPY=(100%+NR​)N

In which, R is the APR, N, the compound frequency, is how many times we reinvest per year.

This can also be reduced when N is much larger than R:

APY=((100%+RN)NR)R→eRAPY = ((100\%+\frac{R}{N})^\frac{N}{R}) ^{R}\to e^{R}APY=((100%+NR​)RN​)R→eR

EZ-FI offers the best compound performance by maintaining the reinvest interval around 15 minutes to balance the gas fees and efficiency.

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Last updated 2 years ago