APY, Rewards & Boosted Yields
The APY on a Peridot market can stack up to three layers: base lending yield, boosted-vault yield on selected markets, and reward incentives. Here's each one, and how the app combines them into the single number you see.
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Layer 1 · Base lending yield
Borrower interest flowing into the pool, set by the jump rate model and paid through the growing pToken exchange rate. Compounds continuously, nothing to claim, genuinely variable: it tracks utilization block by block. - 2
Layer 2 · Boosted markets
On selected Stellar markets, deposits also route into an auto-compounding vault that puts idle pool liquidity to work. The app marks boosted markets and folds the boost into the displayed APY. It's opt-in per market, not default, because boosted yield inherits the vault strategy's risk. - 3
Layer 3 · Reward incentives
Some markets carry PERIDOT token incentives on top, streamed to suppliers or borrowers by pool share. Shown as a separate line so you can tell sustainable base yield from promotional yield. Every verified transaction also earns leaderboard points, independent of any token incentive.
APR vs APY, honestly#
- APR is the simple annualized rate the contract quotes.
- APY includes compounding. On Peridot interest compounds automatically, so APY is what your balance actually tracks.
- Sub-basis-point rates display as <0.01% instead of a misleading 0.00%.
- Charts in the app show real recorded history, not backfilled estimates; a young market shows a short chart.
Earnings projector
What a deposit grows into at a given APY, with interest compounding into your balance.
APY on Peridot is variable: it moves with utilization every block. This projection holds it constant, so treat it as an illustration, not a promise.
Balance after 24 months
$1,102.50
Interest earned
+$102.50
Where does the yield come from?
Every percentage point of supply APY is paid by a borrower on the other side of the pool, plus, on boosted markets, by the vault strategy's returns. If a rate ever looks too good to be explained by those sources, that's a question worth asking of any protocol. Peridot's rates are derivable from the formulas in these docs.Read next#
Points & leaderboard
The engagement layer on top: points, badges, seasons.
Risks
What variable yield does and doesn't protect you from.
Common questions
Where does the yield actually come from?
From borrowers. Every percentage point of supply APY is interest a borrower on the other side of the same pool is paying, plus, on boosted markets, the returns of the vault strategy. There is no other source.
Is the APY guaranteed?
No. It is variable by construction and changes with utilization. The figure shown is the current rate, not a promise for the year.
Why does a rate show as less than 0.01%?
Sub-basis-point rates are displayed as <0.01% rather than rounded to 0.00%, so a small but real rate is never shown as nothing.
Why is the APY chart on a new market so short?
Charts show real recorded history only. A young market has little history, and Peridot does not backfill estimated data to make the line look longer.
Last reviewed on .