What is APY?

APY description.

Annual Percentage Yield is abbreviated as APY. This calculates the real rate of return on your principal tokens by factoring in the effect of compounding interest. As in case of Athena.finance, your $ATHN tokens represent your base, and compound interest is added on a regular basis during each Rebase event (Every 30 minutes).

Your new principal amount is equal to the sum of your then-current Athena token amount and your new rebase token amount. This total is used to calculate your next rebase rewards.

One fascinating aspect of APY is that your balance will grow exponentially rather than linearly over time! Assuming a daily compound interest rate of 2 percent, if you begin with a balance of 1 $ATHN on day 1, your balance will grow after a year to about 1480.24 $ATHN.