You will earn interest every day, and interest will be compounded daily. Interest is calculated using your minimum balance and the annualized rate for that day.
As long as your accrued interest is above the minimum, you will get paid interest at the beginning of each week. The minimum limit is based on the smallest unit of that asset. The minimum for TUSD, for example, is $0.01. The minimum for BTC is 0.00000001 BTC.
The interest will be paid back in kind to your interest account, and automatically reinvested.
Please note, that the rate listed in-app is the rate you can be paid up to but, this will fluctuate.
What is the rate of interest? Does that change over time? What causes it to change? How will you communicate when it will change?
The interest rate can change one time daily.
We will try our best to maintain a competitive and stable interest rate. To view the most updated rate, you can go to the Interest account tab on your home screen and tap the crypto of your choice.
How is the amount of interest I earn each day calculated?
Interest is calculated using your minimum daily balance and the interest rate for that day. We currently define the end of day as midnight UTC time. We round daily interest rates down using a precision of 1/10,000th of a percent, for example, 0.1234%.
On Day 1, you’ve added 1,000 to your Interest-earning TUSD on September 1st. Your minimum balance for the day was 0 TUSD, though, so you do not accrue interest until September 2nd.
On Day 2 (September 2nd), let’s say the APY is 7.00%. The interest you would accrue for Day 2 would be your minimum daily balance (1,000) times the daily interest rate (derived from APY). In this example, the daily interest rate is (1 + 0.07) ^ (1/365) - 1 = 0.0185%. Therefore, your accrued interest for the day would be 1,000 * 0.000185 = 0.185 TUSD. This accrued interest will count toward your interest-earning balance going forward.
On Day 3 (September 3rd), let’s say the APY is now 7.25%.
This implies a daily interest rate of (1 + 0.0725) ^ (1/365) - 1 = 0.0191%.
The interest you would accrue for Day 3 is therefore 1,000.185 * 0.000191 = $0.19103533 TUSD. Again, the interest-earning balance of 1,000.185 reflects the $0.185 that was accrued on Day 2.
Let’s say on Day 4 (September 4th), you add 500 TUSD to your balance, and the APY is still 7.25%. Your interest-earning balance is now $1,000.37603533 TUSD. The new $500 that was deposited on Day 4 does not yet accrue interest, because interest accrues against your minimum balance over the day.
If I add funds to an existing interest-earning balance, how does that impact the interest accrued for that day?
We calculate your interest based on your minimum daily balance. That means that if you initially had $100 on day 1, and deposited $100 more on day 2, day 2’s minimum balance is $100. However, day 3’s minimum daily balance is now $200.00 plus interest accrued on day 2.