How to calculate the Net APY that is displayed for users on https://app.compound.finance/

net_apy.md

Net APY Calculation

1. Convert all supplied and borrowed asset amounts to a single asset (like USD or ETH).
2. Calculate the sum of (suppliedAmount * supplyApyAsDecimal - borrowedAmount * borrowApyAsDecimal) for all underlying assets.
3. If the calculated sum from the previous step is >0 then Net APY = 100 * (sum / totalSuppliedValue). If the calculation from the previous step is <0 then Net APY = 100 * (sum / totalBorrowedValue). If the calculation from the previous step is 0 then Net APY = 0.

Example

Net APY:

• -7.29%

Supplied Assets:

• 0.6 ETH ($260.20) @ 1.11% APY

Borrowed Assets:

• 75 BAT ($26.56) @ 5.57% APY
• 100.02 USDT ($100.02) @ 10.64 APY%

Calculation:

(260.20 * 0.0111 - 0 * 0) + (0 * 0 - 26.56 * 0.0557) + (0 * 0 - 100.02 * 0.1064) = -9.2333

100 * (-9.2333 / (26.56 + 100.02)) = -7.294438299889398

-7.29%

As of now on Compound on Rinkeby network, the divisor seems to be the sum of the assets you've supplied, i.e., their definition seems to be "Net APY compared to what you invested".

This gets the correct value for me:

Net APY = 100 * (sum / totalSupplied)

Don't need the conditional check on if the sum is positive or negative.

Example from my rinkeby wallet (using DAI and USDC so no currency conversion step here):

sum = (14.53*0.0691 + 59.99*0 - 34.24*0.1369)/(14.53+59.99) = -0.0494
net apy = sum * 100 = -4.94%

Hm, something is not adding up. I did an example calculation and got a very different value than shown on the website, perhaps it's because the website somehow includes COMP while you don't? Not sure how, though.

I get a very different value in my testing application