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Exercise Six - Interest accrual

Satinder Rawal answered on April 23, 2023 Popularity 1/10 Helpfulness 1/10

answer Exercise Six - Interest accrual

Exercise Six - Interest accrual

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Background

Smart Contracts have a concept called addresses. This allows the Smart Contract writer to separate the money in a customers account into two distinct places. This can be used in many ways, but it is very useful for Smart Contracts that accrue interest. Since interest accrual often happens at a different schedule to interest application, often Smart Contract writers will put accrued interest into a separate address.

Exercise

In this exercise, complete the below function _accrue_interest. This function should instruct the transfer of the accrual amount from the internal pnl_account address ACCRUED_OUTGOING to the ACCRUED_INCOMING address of our account.

parameters = [
    Parameter(
        name='gross_interest_rate',
        shape=NumberShape(
            kind=NumberKind.PERCENTAGE, min_value=0, max_value=1, step=0.01),
        level=Level.TEMPLATE,
        description='Gross Interest Rate',
        display_name='Rate paid on positive balances',
    ),
]
def _accrue_interest(vault, end_of_day_datetime):
    denomination = vault.get_parameter_timeseries(name='denomination').latest()
    # Get the balance at the end of the previous day
    balances = vault.get_balance_timeseries().at(timestamp=end_of_day_datetime)
    effective_balance = balances[(DEFAULT_ADDRESS, DEFAULT_ASSET, denomination, Phase.COMMITTED)].net
    gross_interest_rate = vault.get_parameter_timeseries(
        name='gross_interest_rate'
    ).before(timestamp=end_of_day_datetime)
    daily_rate = gross_interest_rate / 365
    daily_rate_percent = daily_rate * 100
    amount_to_accrue = _precision_accrual(effective_balance * daily_rate)
    # Your code goes here.
    def _accrue_interest(vault, end_of_day_datetime):
    denomination = vault.get_parameter_timeseries(name='denomination').latest()
    # Get the balance at the end of the previous day
    balances = vault.get_balance_timeseries().at(timestamp=end_of_day_datetime)
    effective_balance = balances[(DEFAULT_ADDRESS, DEFAULT_ASSET, denomination, Phase.COMMITTED)].net
    gross_interest_rate = vault.get_parameter_timeseries(
        name='gross_interest_rate'
    ).before(timestamp=end_of_day_datetime)
    daily_rate = gross_interest_rate / 365
    daily_rate_percent = daily_rate * 100
    amount_to_accrue = _precision_accrual(effective_balance * daily_rate)
    if amount_to_accrue > 0:
        posting_ins = vault.make_internal_transfer_instructions(
            amount=amount_to_accrue,
            denomination=denomination,
            client_transaction_id=vault.get_hook_execution_id(),
            from_account_id=internal_account,
            from_account_address='ACCRUED_OUTGOING',
            to_account_id=vault.account_id,
            to_account_address='ACCRUED_INCOMING',
            instruction_details={
                'description': 'Daily interest accrued at %0.5f%% on balance of %0.2f' %
                               (daily_rate_percent, effective_balance)
            },
            asset=DEFAULT_ASSET
        )
        vault.instruct_posting_batch(
            posting_instructions=posting_ins,
            effective_date=end_of_day_datetime
        )
def _precision_accrual(amount):
    return amount.copy_abs().quantize(Decimal('.00001'), rounding=ROUND_HALF_UP)

https://docs.thoughtmachine.net/vault-core/4-6/EN/tutorials/smart-contracts/#basic-contract-exercise_six__interest_accrual

Popularity 1/10 Helpfulness 1/10 Language python

Source: Grepper

Tags: python six

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Contributed on Apr 23 2023

Satinder Rawal

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Exercise Six - Interest accrual

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