Superlend
@superlend
Understanding APY on USDC SuperFund If you’ve deposited USDC into SuperFund and discovered that after a few days, the yield isn’t adding up according to your calculations. Here is a walkthrough thread of how interest/APY is accrued in simple terms.
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Superlend
@superlend
1/5 TL;DR > APY is annualized and compounding, not daily. > Early earnings are lower due to a 7-day yield smearing ramp-up. > This protects stability and ensures fairness. > You’ll see your personal APY rise and match the USDC SuperFund’s APY after a few days.
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Superlend
@superlend
2/5 APY (Annual Percentage Yield) shows how much you could earn over a year, with compounding included. So when you see a vault offering 10% APY, that doesn’t mean you’ll earn 10% divided by 365 each day. Instead, it reflects the long-term, compounded growth you’d earn if you stayed in the vault over time.
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Superlend
@superlend
3/5 So how does the USDC SuperFund APY work? SuperFund uses a “yield smearing” mechanism, a feature borrowed from the Euler Earn protocol. Here’s what that means: When yield is earned by the vault, it isn’t paid out all at once. Instead, it's gradually distributed over a period of time (typically 7 days). This creates a smooth, stable return curve and protects against sudden rate spikes or dips.
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Superlend
@superlend
4/5 This is how we recommend users to think about the APY > Main APY: What USDC SuperFund has earned on average over time. > Personal APY: What you’re earning based on your own deposit time. > Projected APY: A forward-looking estimate based on current strategy allocations.
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Superlend
@superlend
5/5 Expect your personal APY to start low and ramp up over 7 days. After that, you’ll be aligned with the vault’s rate at which you can now start enjoying fully compounding returns.
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