Thursday, September 1, 2022

Answer to Leveraging pop-quiz 2

This leveraging pop-quiz 2 isn't trivial.

So, let's solve it by breaking it down into problems that can be solved trivially.

First of all. To know our net APY, computationally, we have to know that formula.

Fortunately, @BenqiFinance gives us that formula, gratis.


Unfortunately, with 8 supply assets and 7 borrow assets, this formula can get complicated, quickly.






Fortunately, the quiz is on only 3 asset classes, $sAVAX supply (because, as a staked asset, it grows in value over time) and the asset you loop on (supply and borrow).

But how can we know that any formula we develop reflects reality? Particularly when MY reality already has every asset supplied and borrowed on @BenqiFinance?

Easy. I'll set up a new account, and develop and verify my net APY formula at each supply and borrow.

On y va!


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