Stella
  • Overview
    • 🌠Getting Started
    • 🤝Pay-As-You-Earn (PAYE) Model
  • Protocol Mechanism
    • ❓How Stella Works?
    • 🚀Stella Strategy
      • Why Stella Strategy is Unique?
      • Strategy Type
      • Asset Type
      • Strategy Exposure
      • Collateral Factor
      • Borrow Factor
      • Credits
      • Price Range & Liquidity Shape
      • Liquidation
        • Liquidation Discount
        • Post-Liquidation Value
        • Pendle/Penpie Liquidation Price
      • Price Impact
      • Leverage
      • Supported Strategies
    • 🏦Stella Lend
      • Why Stella Lend is Unique?
      • Pool Type
      • Supported Assets
      • Yield Vault
      • Withdrawal Delay
    • 💰Yield Calculation
      • PAYE Graph
      • Yield Sharing
    • ⚠️Risk Framework
      • Precautionary Measures
      • Slow Mode
  • App Guide
    • Walkthrough Stella APP
    • Open a position
    • Close a Position
    • View Your Position
    • Add/Remove Extra Collateral
    • Claim Assets from Liquidated Position
    • Deposit & Withdraw Assets
  • Developers
    • 📃Contract Addresses
      • Core
      • Stella Strategy
      • Stella Lend
      • Oracle
    • 📜Contract ABI
    • ⚙️API
  • Tokenomics
    • 🎯ALPHA Token
    • ⚡Staking & Protocol Fees
    • 👥Token Distribution
  • Additional Information
    • 🟠About Stella
    • 🔎Audit Reports
    • 📣Community Links
    • 📸Media Kit
    • ❔FAQ
    • 📖Terms of Use
Powered by GitBook
On this page
  1. Protocol Mechanism
  2. Yield Calculation

PAYE Graph

PreviousYield CalculationNextYield Sharing

Last updated 1 year ago

To incentivize borrowers to use liquidity from our ecosystem to generate as high yield as possible, Stella utilizes a model where the higher the annualized yield, the lower amount to be shared to lenders, and only yields from the leveraged portion are used to calculate the cut.

cut=0.25+0.75(1+YieldAPR0.25)2\text{cut} = 0.25 + \frac{0.75}{\left(1+\frac{\text{Yield}_{\text{APR}}}{0.25}\right)^2}cut=0.25+(1+0.25YieldAPR​​)20.75​

Below is a graph illustrating the range of share cuts (Y-axis), which can vary from 25% to 100%, based on the yields generated by leveragoors (X-axis). To navigate through the graph, click .

Annualized Yield (%)
% Shared
To Leveragoors (%)
To Lenders (%)

0

100

0

0

10

63.27

3.67

6.33

20

48.15

10.37

9.63

50

33.33

33.33

16.67

100

28.00

72.00

28.00

150

26.53

110.20

39.80

💰
here
Yield shared to lenders based on a leveragoor's generated yield. Note that the graph excludes protocol fee deductions from yield shared to lenders.