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  • Exchequer Protocol Overview
  • Protocol Concepts
    • Downside Protection
    • Liquidity Note
    • Fixed Price Sale / Auction
    • Yield Distribution
    • Upside Boost
    • Redemption
  • Note Types
    • Liquidity Note
    • Convertible Note
    • Incentive Note
  • Note Features
    • Note Types
    • Maturity
    • Upside Boost
    • Downside Protection
    • Safety Margin
    • Boosted Yield
    • 7-Day Yield
    • Time Left
    • Underlying Token
    • Pay Token
    • Protection Status
    • Collateral Dex
    • Note Price
    • Project Obligation
    • Collateral (LP) Gain/Loss
  • Offering Features
    • Signaled Interest
    • Term
    • Offering Size
    • Issue Size
    • Funding Progress
    • Liquidity Created
    • Sale Duration
    • Offering Type
    • Offering Price
    • Note Quantity
  • Signaling Features
    • Intended Investment
    • Signal Interest
  • Redemption Features
    • Note Extension
    • Note Redemption
  • Whitepapers/Research
  • Glossary
  • Integrate with Exchequer
    • Integrate with Exchequer
  • APIs
    • Exchequer Subgraph
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  • How It's Calculated
  • Important Considerations

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  1. Note Features

7-Day Yield

The 7-day yield is an annualized percentage yield (APY) that represents the estimated annual return based on the trading fees collected over the previous seven days. This metric helps investors understand the potential earning rate of a Liquidity Note's underlying LP position if the performance of the past week were to continue over a full year.

How It's Calculated

  1. Collect Trading Fees from the Past 7 Days:

    • Sum the total trading fees earned by the underlying LP collateral over the last seven days.

  2. Calculate the Weekly Yield:

    • Weekly Yield (%) = (Total Trading Fees Collected Over 7 Days / Total Value of the LP Position) × 100

  3. Annualize the Weekly Yield to Determine APY:

    • 7-Day Yield (APY%) = Weekly Yield (%) × 52

    • The factor 52 represents the number of weeks in a year, projecting the weekly yield over an annual period.

Important Considerations

  • Past Performance is Not Indicative of Future Results: The 7-day yield is based on historical data and assumes that the past week's performance will continue, which may not be the case due to market volatility.

  • Market Factors: Trading volumes, asset prices, and liquidity can fluctuate, affecting the actual returns.

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Last updated 7 months ago

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