What Affects iAsset APY

The APY for iAsset holders is dynamic and depends on multiple inputs:

• Borrowed vs Collateral Supply – Higher delegation relative to collateral = higher APY.

• Composition Gap – If the actual collateral portfolio differs from target weights, APY is adjusted.

• Collateralization Rate – Applied to encourage deposits of underrepresented assets or discourage overrepresented ones.

• Reward-Reduction Rate – Part of the rewards may be withheld to fund incentives.

• Asset Desirability Score – Governance can assign scores to prioritize high-efficiency assets, especially post-DFMM.

Together, these variables create a reward system that is adaptive, balanced, and growth-oriented.