How Fixed Yield is Determined

The fixed yield in Solomon DeFi Vaults is determined at the time of deposit based on the vault's predefined annual percentage yield (APY) and the duration of the investment. The formula used to calculate the yield is straightforward:

$$Yield=Principal×(1+(APY× 12/Term))$$

For example, a deposit of 1000 USDC with a 20% APY over 3 months would result in:

$$1000×(1+(0.2× 3/12 ))=1050 svUSDC$$

This fixed yield provides certainty to users, allowing them to plan their financial strategies with confidence, knowing exactly what their return will be.