For strategies with flexible APY:
Annual percentage yield, considering interest compounding, for strategies with flexible rates is calculated based on the monthly strategy yield using the following formula:
Where y = actual yield of the flexible rate strategy for a specific month
Yi(Monthly Yield) for periods with indeterminate yields:
The Monthly Yield parameter for periods where the yield is yet to be determined is calculated using a weighted average formula for the past 12 months. The weights assigned to yields are higher for periods closer to the current month.
Weighted average yield (W AVG) is calculated using the following formula:
Where:
Wi = weight assigned to the yield in month i
Ri = yield in month i
∑ = sigma, summation symbol
Example:
Month 1 (oldest): 4% yield, weight 1
Month 2: 5% yield, weight 2
Month 3 (most recent): 6% yield, weight 3
W AVG = ~5.33%