Hi,
I’d like to suggest to change the way how Historical Returns Annualized (HRA) is calculated for Stability Pools. Currently HRA consists of ADA and INDY rewards, both are represented as annualised % of your deposited iAsset.
For example, currently HRA of iUSD Stability pool is roughly 38%. ADA Rewards HRA is around 17% and INDY Rewards HRA is 21 %.
While for INDY rewards are coming from the designated rewards pool, so this is indeed what you earn, ADA ‘rewards’ in fact are proceeding from burning your iAsset, so it is not a reward, it is not a % your earn on your iAsset, it is ADA that you get for getting a portion of your iAsset burnt when someone’s CDP is liquidated. Therefore this 17% in ADA terms comes at cost (your iAsset is taken away to cover CDP liquidation). It has some temporary advantage, because you get a bit more ADA for iAsset burnt from Stability Pool than if you burn it yourself in your CDP but it is not a reward.
Hence, I suggest HRA should represent only those rewards that are coming from the designated reward pools, HRA % should not take into account ADA that you get at your own expense.
Thanks