APR

The Annual Percentage Rate (APR) dynamically adjusting to reflect the current utilization of our lending services. This adjustment is particularly influenced by Blast's native yield mechanics, which enable an innovative allocation of yield rewards between borrowers and suppliers. The APR on nazca.money comprises several key components:

Supply(Base) APR:

This is the base interest rate earned on supplied assets. It varies with the value of the supplied assets.

Borrow(Base) APR:

The basic interest rate applied to borrowed assets. This rate increases with the size of the borrowed asset and can sometimes be negative, indicating a situation where interest is paid by borrowers.

Supply Reward APR (applies for ETH / stablecoin pools)

The Supply Reward APR is an additional yield earned on top of the standard Supply(Base) APR for supplying assets. This reward is algorithmically determined, tapping into the native yield mechanics of the Blast platform, enhancing the return on ETH and stablecoins.

Borrow Reward APR (applies for ETH / stablecoin pools)

Borrowers earn rewards in the form of Borrow Reward APR, which is additional to the Borrow(Base) APR. Like the Supply Reward APR, the Borrow Reward APR is also influenced by Blast’s yield mechanics, offering a unique incentive for borrowing on the platform.

Net APR

The Net APR is calculated as follows:

Net APR = Supply APR (Supply(Base) APR + Supply Reward APR) - Borrow APR (Borrow(Base) APR + Borrow Reward APR). It can be negative if Borrow(Base) APR doesn't cover the entire yield.

For example:

Suppose a user deposits 10 ETH and borrows an equivalent value in stablecoins on nazca.money. Let's consider the following rates:

• Supply(Base) APR for ETH: 3%

• Supply Reward APR (from Blast's yield): 2%

• Borrow(Base) APR for stablecoins: 6%

• Borrow Reward APR (from Blast's yield): -4% (indicating a negative borrowing cost)

Supply Side: The user's 10 ETH deposit (assuming 1 ETH = $1000 for simplicity) earns a base APR of 3%, amounting to $300. Additionally, they earn a 2% Supply Reward APR from Blast's yield, which is another $200.

Borrow Side: For borrowing the equivalent value in stablecoins, the user faces a 6% borrowing APR, which is $600. However, they also benefit from a -4% Borrow Reward APR from Blast's yield, reducing this cost by $400.

Net Earnings and APR Calculation:

• Total Supply Earnings: $300 (base) + $200 (reward) = $500

• Total Borrow Costs and Rewards: $600 (base cost) - $400 (reward) = $200 net cost

• Net Total Earnings: $500 (supply earnings) - $200 (borrow cost) = $300

In this scenario, considering both supply and borrow transactions, and including the impact of Blast's yield rewards, the user would earn a net total of $300 on their transactions.