Soloman Vault Docs
  • Introduction
    • Overview
    • Key Features
    • Why Solomon Vault?
    • How the Vault Works
      • Understanding Maturity Date
      • How Fixed Yield is Determined
      • Redeem Policies
      • Risks and Considerations
    • FAQs
      • General
      • Deposits and Rewards
      • Rebate Mechanism
    • V2 RoadMap
  • Getting Started
    • How to Deposit
    • Redeeming svUSDC
    • Early Withdrawal Guidelines
    • Supported Assets
  • Rebate Mechanism
    • What is the Rebate Mechanism?
    • Increasing Your Rebate Rate
    • Rebate Calculation
    • Quarterly Rebate Settlement
    • Rebate Rate Decrease Conditions
  • Security and Audits
    • Audits and Security Measures
    • Smart Contract Risks
    • How to Protect Your Funds
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  1. Introduction
  2. How the Vault Works

How Fixed Yield is Determined

PreviousUnderstanding Maturity DateNextRedeem Policies

Last updated 6 months ago

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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))Yield=Principal×(1+(APY× 12/Term)) 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 svUSDC1000×(1+(0.2× 3/12 ))=1050 svUSDC1000×(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.