APY, Rewards & Boosted Yields
The APY shown on a Peridot market can stack up to three layers: the base lending yield paid by borrowers, boosted-vault yield on selected markets, and protocol reward incentives. This page explains each layer and how the app combines them into one number.
Layer 1: base lending yield#
The foundation is borrower interest flowing into the pool, set by the jump rate model and delivered through the growing pToken exchange rate. It compounds continuously and needs no claiming. Because it tracks utilization, it is genuinely variable — the number you see is the current rate, not a guarantee.
Layer 2: boosted markets#
On selected Stellar markets, deposits are additionally routed into an auto-compounding vault strategy that puts the pool's idle liquidity to work. Where active, the app shows the boost as part of the displayed APY and marks the market as boosted. Boosted yield inherits the risk of the underlying strategy — which is why it's opt-in per market, not default.
Layer 3: reward incentives#
Some markets carry PERIDOT token incentives on top: rewards stream to suppliers or borrowers proportionally to their share of the pool. Where active, the app shows them as a separate line so you can distinguish sustainable base yield from promotional yield. Separately from token incentives, every verified transaction also earns leaderboard points.
APR vs APY, honestly#
- APR is the simple annualized rate the contract quotes.
- APY includes compounding — on Peridot interest compounds automatically, so APY is what your balance actually tracks.
- Sub-basis-point rates display as <0.01% instead of a misleading 0.00%.
- Charts in the app show real recorded history, not backfilled estimates — a young market shows a short chart.
Earnings projector
What a deposit grows into at a given APY, with interest compounding into your balance.
APY on Peridot is variable — it moves with utilization every block. This projection holds it constant, so treat it as an illustration, not a promise.
Balance after 24 months
$1,102.50
Interest earned
+$102.50
Where does the yield come from?
Every percentage point of supply APY is paid by a borrower on the other side of the pool — plus, on boosted markets, by the vault strategy's returns. If a rate ever looks too good to be explained by those sources, that's a question worth asking of any protocol. Peridot's rates are derivable from the formulas in these docs.