Function calculate_rate_given_fixed_price

Source

pub fn calculate_rate_given_fixed_price(
    price: FixedPoint<U256>,
    position_duration: FixedPoint<U256>,
) -> FixedPoint<U256>

Expand description

Calculate the rate assuming a given price is constant for some annualized duration.

We calculate the rate for a fixed length of time as:

r = \frac{(1 - p)}{p \cdot t}

where $p$ is the price and $t$ is the length of time that this price is assumed to be constant, in units of years. For example, if the price is constant for 6 months, then $t=0.5$ . In our case, $t = \text{position_duration} / (60*60*24*365)$ .

Function calculate_rate_given_fixed_priceCopy item path

Function calculate_rate_given_fixed_price