diff --git a/smart-wallets/src/token/YieldDistributionToken.sol b/smart-wallets/src/token/YieldDistributionToken.sol
index 34e709e..472662d 100644
--- a/smart-wallets/src/token/YieldDistributionToken.sol
+++ b/smart-wallets/src/token/YieldDistributionToken.sol
@@ -25,7 +25,8 @@ abstract contract YieldDistributionToken is ERC20, Ownable, IYieldDistributionTo
      * @param yieldAccrued Total amount of yield that has ever been accrued to the user
      * @param yieldWithdrawn Total amount of yield that has ever been withdrawn by the user
      * @param lastBalanceTimestamp Timestamp of the most recent balance update for the user
-     * @param lastAmountSeconds AmountSeconds of the user at the time of the most recent deposit
+     * @param lastDepositAmountSeconds AmountSeconds of the user at the time of the
+     *   most recent deposit that was successfully processed by calling accrueYield
      */
     struct UserState {
         uint256 amount;
@@ -33,7 +34,7 @@ abstract contract YieldDistributionToken is ERC20, Ownable, IYieldDistributionTo
         uint256 yieldAccrued;
         uint256 yieldWithdrawn;
         uint256 lastBalanceTimestamp;
-        uint256 lastAmountSeconds;
+        uint256 lastDepositAmountSeconds;
     }
 
     /**
@@ -307,7 +308,6 @@ abstract contract YieldDistributionToken is ERC20, Ownable, IYieldDistributionTo
         UserState memory userState = $.userStates[user];
         uint256 depositTimestamp = depositHistory.lastTimestamp;
         uint256 lastBalanceTimestamp = userState.lastBalanceTimestamp;
-        uint256 lastAmountSeconds = userState.lastAmountSeconds;
 
         /**
          * There is a race condition in the current implementation that occurs when
@@ -330,23 +330,34 @@ abstract contract YieldDistributionToken is ERC20, Ownable, IYieldDistributionTo
         // Iterate through depositHistory and accrue yield for the user at each deposit timestamp
         Deposit storage deposit = depositHistory.deposits[depositTimestamp];
         uint256 yieldAccrued = 0;
+        uint256 amountSeconds = userState.amountSeconds;
         uint256 depositAmount = deposit.currencyTokenAmount;
         while (depositAmount > 0 && depositTimestamp > lastBalanceTimestamp) {
             uint256 previousDepositTimestamp = deposit.previousTimestamp;
-            uint256 previousTotalAmountSeconds = depositHistory.deposits[previousDepositTimestamp].totalAmountSeconds;
+            uint256 intervalTotalAmountSeconds =
+                deposit.totalAmountSeconds - depositHistory.deposits[previousDepositTimestamp].totalAmountSeconds;
             if (previousDepositTimestamp > lastBalanceTimestamp) {
-                yieldAccrued += _BASE * depositAmount * userState.amount * (depositTimestamp - previousDepositTimestamp)
-                    / (deposit.totalAmountSeconds - previousTotalAmountSeconds);
+                /**
+                 * There can be a sequence of deposits made while the user balance remains the same throughout.
+                 * Subtract the amountSeconds in this interval to get the total amountSeconds at the previous deposit.
+                 */
+                uint256 intervalAmountSeconds = userState.amount * (depositTimestamp - previousDepositTimestamp);
+                amountSeconds -= intervalAmountSeconds;
+                yieldAccrued += _BASE * depositAmount * intervalAmountSeconds / intervalTotalAmountSeconds;
             } else {
-                yieldAccrued += _BASE * depositAmount * (userState.amountSeconds - lastAmountSeconds)
-                    / (deposit.totalAmountSeconds - previousTotalAmountSeconds);
+                /**
+                 * At the very end, there can be a sequence of balance updates made right after
+                 * the most recent previously processed deposit and before any other deposits.
+                 */
+                yieldAccrued += _BASE * depositAmount * (amountSeconds - userState.lastDepositAmountSeconds)
+                    / intervalTotalAmountSeconds;
             }
             depositTimestamp = previousDepositTimestamp;
             deposit = depositHistory.deposits[depositTimestamp];
             depositAmount = deposit.currencyTokenAmount;
         }
 
-        userState.lastAmountSeconds = userState.amountSeconds;
+        userState.lastDepositAmountSeconds = userState.amountSeconds;
         userState.amountSeconds += userState.amount * (depositHistory.lastTimestamp - lastBalanceTimestamp);
         userState.lastBalanceTimestamp = depositHistory.lastTimestamp;
         userState.yieldAccrued += yieldAccrued / _BASE;