> For the complete documentation index, see [llms.txt](https://sacred.gitbook.io/sacred-technical-private-doc/aoErdM4nGaDgTMKPJV7E/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sacred.gitbook.io/sacred-technical-private-doc/aoErdM4nGaDgTMKPJV7E/what-is-sacred/user-journey-from-deposit-to-withdrawal/3.-earn-while-waiting/share-tracking-quirks.md).

# Share Tracking Quirks

Variable compound interest rates The Interest Rate varies block by block. The share system does not take this into account. This leads to a slightly unfair distribution.

Extreme Scenario:&#x20;

1. Time = 0, Rate = 50% : Alice deposits 10 ETH&#x20;
2. Time = 1, Rate = 10% : Bob deposits 10 ETH&#x20;
   * Before Bob’s deposit the pool is at 15 ETH, Alice deserves 5ETH&#x20;
   * After Bob’s deposit the pool is at 25 ETH, but now earning 10%.&#x20;
3. Time = 2, : Alice + Bob withdraws.
   * Total in pool: 27.5 ETH&#x20;
   * Total in interest to distribute: 27.5 - 10\*2 = 7.5&#x20;
   * Using proposed mechanism:&#x20;
     * Alice gets ⅔ of the 7.5 = 5&#x20;
     * Bob gets ⅓ of the 7.5 = 2.5&#x20;
   * With a 100% fair system:&#x20;
     * Alice deserves 5 + 1.5 = 6.5&#x20;
     * Bob deserves 1

Conclusion: While this was an extreme scenario, rates do fluctuate and this is something to take into consideration. Because the calculations for a 100% fair system are computationally expensive and protecting user’s privacy increases the complexity, we believe that this margin of error is acceptable, at least for now in Version 1.&#x20;

This also obscures the true interest rates that the user would receive from Aave and can be seen as a positive quirk to further improve privacy by making it hard for an outside observer to calculate yield using Aave’s interest rates
