hyperdrive_math

Function calculate_hpr_given_apy

Source 
pub fn calculate_hpr_given_apy(
    apy: I256,
    position_duration: FixedPoint<U256>,
) -> Result<I256>
Expand description

Calculate the holding period return (HPR) given a compounding, annualized rate (APY).

Since the rate is compounding, we calculate the hpr as:

\text{hpr} = (1 +  \text{apy})^{t} - 1

where $t$ is the holding period, in units of years. For example, if the holding period is 6 months, then $t=0.5$.