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fix: ARM incentive APY calculation by refining prorating logic for ac… #83

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fix: ARM incentive APY calculation by refining prorating logic for ac… #83

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9 changes: 6 additions & 3 deletions src/templates/origin-arm/arm-incentive-apy.ts
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Original file line number Diff line number Diff line change
Expand Up @@ -15,7 +15,8 @@ const TOKEN0_DECIMALS = 18
/**
* External incentive rewards (currently Merkl campaigns) for an ARM on a given day.
*
* Sums each active campaign's daily reward value (USD, prorated for the first/last day), then:
* Sums each active campaign's reward value for the day (USD, prorated for the first/last day and
* capped at the current block for today's in-progress stat), then:
* - incentiveYield: that value expressed in token0 units (parallel to ArmDailyStat.yield)
* - incentiveApr: dailyRewardUSD / TVL_USD * 365.25
* - incentiveApy: the same, daily-compounded
Expand All @@ -42,6 +43,8 @@ export const calculateArmIncentiveApy = async (
const date = new Date(block.header.timestamp)
const startOfDay = dayjs.utc(date).startOf('day').toDate()
const endOfDay = dayjs.utc(date).endOf('day').toDate()
const isCurrentDay = dayjs.utc(date).isSame(dayjs.utc(), 'day')
const endOfRewardWindow = isCurrentDay ? date : endOfDay

const campaigns = await ctx.store.find(MerklCampaign, {
where: {
Expand Down Expand Up @@ -76,9 +79,9 @@ export const calculateArmIncentiveApy = async (
// small pool earns far less than the max budget. Uncapped campaigns emit the full daily budget.
const dailyUSD =
campaign.aprCap != null && tvlUSD > 0 ? Math.min(maxDailyUSD, (campaign.aprCap * tvlUSD) / 365) : maxDailyUSD
// Prorate the first/last day by how much of it the campaign is active.
// Prorate by how much of the day's current reward window the campaign is active.
const overlapMs =
Math.min(endOfDay.getTime(), campaign.endTimestamp.getTime()) -
Math.min(endOfRewardWindow.getTime(), campaign.endTimestamp.getTime()) -
Math.max(startOfDay.getTime(), campaign.startTimestamp.getTime())
const activeFraction = Math.max(0, Math.min(1, overlapMs / DAY_MS))
dailyRewardsUSD += dailyUSD * activeFraction
Expand Down