> For the complete documentation index, see [llms.txt](https://docs.clip.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clip.finance/clip-finance-yield-strategies/apy-calculation.md).

# APY calculation

The **Total APY** for each pool calculates in the pool asset.

Firstly we fetch and calculate several values:

* Supply rate APY (for leveraged lending)
* Borrow rate APY (for leveraged lending)
* Reward market state (which could include additional supply or borrow rates APYs)
* Leverage factor (which is multiplied by all the above APYs)

Then calculate the **Base APY** and **Reward APY** (subtracting Borrow from Supply).

For wstETH and ezETH, we also calculate the Liquidity staking APY, which we receive from third-party sources.

Finally, to get the **Total APY** we sum up the **Base APY** (and add its compound factor), **Reward APY**, and liquidity staking APY.