To convert an APR to an APY, Pickle Finance will perform the following calculation:
APY = (baseAPR + (((1+(0.8*rewardAPR/365))^365)-1))
For example, a strategy with a 10% base yield, and a 100% reward token yield, should yield the following calculation. Note that we use 0.1 in place of 10% and 1.00 in place of 100%.
APY = (0.1 + (((1+(0.8*1.00/365))^365)-1)) = 1.3236
To convert this to a percentage, multiply by 100. This strategy should return 132.36%. Using Pickle has increased your APR from 110% to 132% after fees.
The above calculation assumes daily compounding of your strategy. Some strategies do not compound daily, despite our best efforts. Either the pools do not have enough money in them, or the strategy does not return enough rewards relative to gas costs to justify daily compounding. This is not a bad thing. For lower and medium yielding strategies the difference between daily or weekly compounding is minimal.
To run the calculation again, but with a different frequency for compounding, you should adjust the chosen formula to the following:
APY = (baseAPR + (((1+(0.8*rewardAPR/compoundsPerYear))^compoundsPerYear)-1))