Rewards are not interest

A market shows "12% APY" to supply. Its interest is 5%. What is the other 7%?

• Interest paid by borrowers at a higher utilization
• A reward valued at today's token price, which can be cut or fall in value
• The venue's skim being returned to suppliers

A spread's interest falls 1 point short of its cost leg, and the reward is worth 4 points at today's price. How many months must the program run at today's price for the year to break even?

• 1 month
• 3 months
• 4 months