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Implied rate (Short ROI) is negative in some cases where fixed > variable #119

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MazyGio opened this issue Jun 1, 2024 · 0 comments
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@MazyGio
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MazyGio commented Jun 1, 2024

_💅︱frontend___DELV__Fmr_Element_Finance__-_Discord

The calc for implied rate doesn't currently account for backpaid interest. It's based on the full amount of basePaid, when we should be working with basePaid - backpaidInterest, since the user gets it back when closing the short, so it's not really a "cost":

backpaidInterest = bondAmount * (vaultSharePrice/openVaultSharePrice) - bondAmount

dpaiton pushed a commit that referenced this issue Jun 2, 2024
…cost basis (#120)

# Resolved Issues
#119 Implied rate (Short ROI) is negative in some cases where fixed >
variable

# Description
This excludes the short's backpaid interest from implied_rate calc
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