What is tiered interest?
Ledn Growth Accounts may offer tiered interest rates, meaning that different portions of your balance can earn different Annual Percentage Yields (APYs).
The applicable APY depends on the balance held in your Growth Account and the current rates offered by Ledn.
How does tiered interest work?
Interest is calculated by applying the corresponding APY to each portion of your balance based on the applicable tier.
For example, imagine the following illustrative rates:
Tier 1: First 100,000 USDC earns 5.00% APY.
Tier 2: Any portion above 100,000 USDC earns 6.00% APY.
If you hold 250,000 USDC:
The first 100,000 USDC would earn 5.00% APY.
The remaining 150,000 USDC would earn 6.00% APY.
Based on this example, your total balance would have a blended APY of 5.60%.
Please note: The rates and balance tiers above are examples provided only to illustrate how tiered interest is calculated. They do not represent or guarantee the current rates offered by Ledn.
For current Growth Account rates and applicable balance tiers, please refer to our Rates and Withdrawal Terms.
What is a blended APY?
A blended APY represents the combined effective APY across your total balance when different portions of that balance earn different rates.
Using the example above, although part of the balance earns 5.00% and another part earns 6.00%, the combined blended APY would be 5.60%.
Remember that moving into a higher tier does not necessarily mean that your entire balance earns the higher APY. The applicable rate is applied to the portion of your balance that falls within each tier.