Rewards

The Total APY for a given Origami lov vault is first calculated by deriving the APR yield for the repricing vault share itself (if aplicable) and then adding the implied APR for the reward points (if applicable). Then the APR values are summed together and used to calculate the estimated APY.

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How We Calculate the Origami Vault APR

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The APR for the levered Origami Vault or lovStrategy is calculated as follows:

$$\boxed{APR = \frac{(P_{current} - P_{prev})}{P_{prev}*(T_{current} - T_{prev})} * 100 * 365}$$

where:

$P_{prev} = [\frac{lovToken}{Token}] \text{ from } t \text{ days ago}$

$T_{prev} = t\text{ days ago}$

$P_{current} = [\frac{lovToken}{Token}]$

$T_{current} = \text{now}$

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How We Calculate Implied APY for Ethena Sats

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While there is no officially recognised APR for Ethena Sats or any other Points, we can calculate an implied APY based on the price that users are willing to pay for the Points "yield" in the Pendle YT market. The formula below shoes how we estimate the implied APR for Sats based on the Pendle Finance YT token on-chain price oracle:

$$\boxed{APR_{implied} = {\text{ Origami Vault Multiplier}}*(\frac{YT_{price}}{\text{Sats Multiplier * DTE}})*100*365}$$

Use continuous compounding formula to convert APR into APY i.e. APY = e^APR - 1

where:

$$\text{Origami Vault Multiplier} = \text{Vault Leverage Factor} * \text{Sats Multiplier}$$

$$YT_{price} = \text{Pendle YT Oracle}_{price}$$

$$\text{DTE} = \text{Pendle YT Days Until Expiry}$$

LovEthena Vaults	Origami Vault Multiplier	Points Multiplier
sUSDe 5x	25	5
sUSDe 7x	35	5
USDe 5x	100	20
USDe 7x	140	20

For more information about the Pendle YT Token price, see Pendle YT Token Price Tracker for Next Expiry

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How We Calculate Implied APY for weETH Loyalty Points and EigenLayer Points

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Applying the same logic that we use above for Ethena Sats, we can estimate the implied APR for ether.fi Loyalty Points and EigenLayer Points based on the Pendle Finance YT token on-chain price oracle:

$$\boxed{APR_{implied} = {\text{Origami Vault Multiplier}}*({ }\frac{YT_{price}}{\text{Points Multiplier * DTE}})*100*365}$$

weETH 4x Points Yield is a sum of both ether.fi and EigenLayer Points.

LovETH Vault	Origami Vault Multiplier	Points Multiplier
weETH 4x	8	2 (Ether.fi) , 1 (EigenLayer)

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How We Calculate Total APY for lovEthena Vaults

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By combining the Vault APR stemming from Native Yield and the Points APR, we can calculate the Total APR as follows:

$$Vault_{APR} + Points_{APR} = Total_{APR}$$

$$\text{APY} = e^\text{APR} - 1$$

Use continuous compounding formula to convert Total APR into Total APY

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How We Calculate Total APY for weETH Vaults

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By combining the Vault APR stemming from Native Yield and the Points APR, we can calculate the Total APR as follows:

$$Vault_{APR} + Points_{APR} = Total_{APR}$$

$$\text{APY} = e^\text{APR} - 1$$

Use continuous compounding formula to convert Total APR into Total APY

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An Alternative Way to Estimate Origami Vault Returns: eAPR

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To protect against economic attacks, Origami vaults impose fees when users enter and exit the vault. These fees accrue to the vault share price. When these vault fees accrue to the users, they cause fluctuations to the vault share price. Thus it may be challenging for a potential Depositor to estimate the true underlying yield for a vault particularly when user vault flows are high.

In response to user feedback, we have generated an Estimated APR or eAPR metric that better reflects the underlying yield of the reserve token for each vault. The eAPR metric is not impacted by volatility stemming from vault entry or exit fees.

The eAPR is calculated as the net spread between the underlying reserve token APR e.g. native wstETH yield from Lido Staking activities, and subtracting all incurred costs including borrow interest and Protocol fees. By summing up these APR values, we can derive the eAPR (and the eAPY) for each vault. See the infographic and the screenshot below for a visual breakdown of eAPR.

Unlike Total APR, the eAPR is not affected by changes to the vault share price caused by user entry and exit

The above infographic shows the impact of native yield, leverage, and points yield on returns. Fees are omitted for simplicity.

Mouse over the eAPR metric in the dApp to display a breakdown of how we derive the eAPR for that vault

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Origami Protocol Fee

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Origami Protocol collects a Performance Fee which varies from vault to vault. The typical Performance Fee varies between 2% to 10% depending on expected yield. See the Fee Schedule, or hover over the eAPR for each Vault for the applicable fee.