APY
APY Description
APY Description:
The annual percentage yield (APY) is the real rate of return earned on an investment, considering the effect of compounding returns. The compounding return is calculated periodically, and the amount is immediately added to the balance. With each period going forward, the account balance incrementally increases, adding to the exponential growth of the initial investment. In the case of Libertas finance, your $Libertas tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 30 minutes).
APY Calculation:
The APY is calculated from the reward yield (a.k.a. rebase rate) using the following equation:
Where:
r = rebase reward rate
n = time period
It rises to the power of 17,520 because a rebase happens 48 times daily. Consider there are 365 days in a year; this would give a rebase frequency of 365 * 48 = 17,520.00
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