# How is Net APY calculated?

## Net APY Calculation

1. Convert all supplied and borrowed asset amounts to a single asset (USD).
2. Calculate **the sum of (suppliedAmount \* supplyApy - borrowedAmount \* borrowApy)** for all  assets(including Vires APR for both deposits and borrows)
3. If the calculated sum from the previous step is >0 then Net APY = 100 \* (sum / totalSuppliedValue). If the calculation from the previous step is <0 then Net APY = 100 \* (sum / totalBorrowedValue). If the calculation from the previous step is 0 then Net APY = 0.

### Example

Supplied Assets:

* 1000 WAVES (*$28000*) @ 3.66% APY + 0.09% Vires APR = *3.72%*
* 10000 USDC (*$10000*) @ 55.57 APY% + 3.16% Vires APR = *58.73%*

&#x20;Borrowed Assets:

* 1000 USDT (*$1000*) @ 54.32 APY% - 3.12% Vires APR = *51.2%*

Calculation:

```
change = (28000 * 0.0372 + 10000 * 0.5873) - (1000 * 0.512) = 6402.6
base = 28000 + 10000 = 38000
Net APY = 6402.6 / 38000 = 16.84%
```

&#x20;Result:&#x20;

*Net APY = 16.84%*


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