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Investigate D-Market USDC Borrow Intrinsic APY Reporting Discrepancy #480

@temptemp3

Description

@temptemp3

Investigate D-Market USDC Borrow Intrinsic APY Reporting Discrepancy

Summary

Investigate reports that the intrinsic APY displayed for USDC borrows in D-Market may be higher than expected and potentially incorrect.

Based on the current model, the borrow intrinsic APY should match the corresponding deposit intrinsic APY calculation. Initial observations suggest the borrow-side value may be displaying a different rate or applying an incorrect calculation path.

Motivation

Accurate APY reporting is critical for users evaluating borrowing costs and market economics.

If the displayed borrow intrinsic APY differs from the deposit intrinsic APY when both should be derived from the same underlying value, users may:

  • Misinterpret borrowing costs.
  • Make suboptimal lending or borrowing decisions.
  • Lose confidence in displayed market metrics.

Investigation Areas

  • Verify how deposit intrinsic APY is calculated.
  • Verify how borrow intrinsic APY is calculated.
  • Compare frontend and backend calculation paths.
  • Confirm whether borrow intrinsic APY should equal deposit intrinsic APY for D-Market USDC.
  • Check for double-counting, scaling, percentage conversion, or compounding errors.
  • Validate displayed values against protocol-level calculations.
  • Review any recent changes affecting APY presentation.

Acceptance Criteria

  • Root cause identified and documented.
  • Confirm whether the displayed borrow intrinsic APY is incorrect.
  • If incorrect, update calculations and UI presentation.
  • Deposit and borrow intrinsic APY values align with protocol expectations.
  • Regression testing performed against other D-Markets.
  • Documentation updated if calculation methodology requires clarification.

Notes

Initial expectation is that the D-Market USDC borrow intrinsic APY should match the deposit intrinsic APY. This assumption should be validated during the investigation.


Disclaimer: This issue was generated with AI assistance and should be reviewed before implementation.

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