If an asset in Flexible can be settled without a fixed term,
why does its APR change every minute?
Earlier, I perceived Earn quite simply:
I deposited an asset ➞ I receive yield ➞ when needed, I withdraw the asset.
But Flexible Products has an interesting detail.
Binance calls this rate the Real-Time APR — it can change every minute, and rewards are calculated every minute.
And here I had a question:
if the term isn’t fixed, what does the current yield depend on?
It turns out the mechanics are more interesting than simply “Binance pays an interest rate for holding an asset.”
According to Binance, assets in Flexible Products can be used for operations, in particular for lending via Margin and Loan. The Real-Time APR for a token takes into account its demand, supply, and other factors.
So, the APR here is not a promise of a fixed rate.
It’s a current indicator of reward that can change along with the conditions affecting how the assets are used.
And that’s exactly what seems most interesting to me about Flexible:
gflexibility relates to the availability of the asset, and APR relates to the current reward conditions.
So it’s not enough to look at only the APR number.
It’s more important to understand where it comes from and why it might change soon after you see it.
#BinanceEarn #SimpleEarn
why does its APR change every minute?
Earlier, I perceived Earn quite simply:
I deposited an asset ➞ I receive yield ➞ when needed, I withdraw the asset.
But Flexible Products has an interesting detail.
Binance calls this rate the Real-Time APR — it can change every minute, and rewards are calculated every minute.
And here I had a question:
if the term isn’t fixed, what does the current yield depend on?
It turns out the mechanics are more interesting than simply “Binance pays an interest rate for holding an asset.”
According to Binance, assets in Flexible Products can be used for operations, in particular for lending via Margin and Loan. The Real-Time APR for a token takes into account its demand, supply, and other factors.
So, the APR here is not a promise of a fixed rate.
It’s a current indicator of reward that can change along with the conditions affecting how the assets are used.
And that’s exactly what seems most interesting to me about Flexible:
gflexibility relates to the availability of the asset, and APR relates to the current reward conditions.
So it’s not enough to look at only the APR number.
It’s more important to understand where it comes from and why it might change soon after you see it.
#BinanceEarn #SimpleEarn
