How to calculate current DAI Savings Rate

Question

I have read the documentation on the topic but still don't get how I can calculate the current DAI Savings Rate myself.

The current dsr value is stored in the pot contract. At time of this writing it amounts to 1000000000000000000000000000. I think I have to divide this value by the RAY, which is a 1 followed by 27 zeroes (1000000000000000000000000000). So the dsr and RAY are equal at the moment.

Next, I have to take the result of this operation (which is 1) and power it to the number of seconds per year (31536000). Obviously this equals to 1 again. So does this mean the current rate is set to 1 percent? It should really amount to zero at the moment.

Another problem I have with this calculation is that once the dsr changes to a weird value, then taking the power of seconds per year might take a really long time to calculate.

Where is my mistake here?

Answer 1

So the calculation is actually correct. The result 1 is the amount by which the funds would be multiplied. So in order to get the percentage I would have to calculate the following:

100 * ((dsr / ray)^secondsPerYear) - 100, which equals to 0 at the moment of this writing.