User’s position

Net Supply

The Net Supply represents the total value of a user’s supplied (collateral) assets, denominated in USD.

Net Borrowed

The Net Borrowed represents the total value of a user’s outstanding borrowings, denominated in USD.

Net APR

The Net APR reflects the user’s effective yield, taking into account both the assets supplied and the assets borrowed. It is calculated using the following formula:

$$netAPR=\frac{\sum_{asset}[(supply(asset)*supplyAPY(asset) - borrow(asset)*borrowAPY(asset))*assetPrice]}{netSupply}$$

Where:

• supply(asset) = The amount of a specific asset supplied to the pool by the user.

• borrow(asset) = The amount of the same asset borrowed by the user.

• supplyAPY(asset) and borrowAPY(asset) = The current annual percentage yield for supplying or borrowing that asset.

• assetPrice = The asset’s price in USD.

This metric gives users a clear view of their net earning (or cost) rate across all their supplied and borrowed positions.

• Health Factor

The Health Factor indicates the overall safety of a user’s position. It measures how close the account is to liquidation.

• A Health Factor below 1 means the position is undercollateralized and can be liquidated.

A Health Factor above 1 means the position is considered healthy.

It is calculated using the formula:

$$HealthFactor=\frac{\sum_{asset}[(supply(asset)*assetLTV)*assetPrice]}{netBorrowed}$$

Where:

• supply(asset) = Amount of each asset supplied by the user.

• assetLTV = The loan-to-value ratio assigned to that asset.

• assetPrice = The price of the asset in USD.

• NetBorrowed = Total borrowed value in USD.