Understanding APY

📊 How AggreLend Evaluates APYs

AggreLend displays an effective APY designed to faithfully represent what your position actually earns over time.

The interface consolidates:

• The ordinary supply-side rate from the currently selected venue.
• Any venue-specific reward streams, which AggreLend converts into your base deposit token and automatically re-supplies.

This means the APY you see is the APY you accrue in-kind, with no separate claim steps or extra calculations required.

Additionally, the router prioritizes durable improvements over short-lived spikes. A short confirmation window ensures optimizations only occur when a change is likely to hold — avoiding unnecessary churn between venues.

Normalization Across Venues

The effective APY is comparable across venues because AggreLend normalizes its inputs:

• Reward token valuation — Reward tokens are priced using conservative quotes.
• Liquidity & utilization checks — Ensures the rate won’t immediately decay after an optimization.
• Venue scoring — Venues with unstable or thin conditions can be down-weighted to avoid chasing headline numbers that won’t translate into realized results.

Together, these steps ensure that the APY displayed in the UI is a practical reflection of your actual position performance — not a marketing peak.