Fixed APY
Last updated
Last updated
Annual Percentage Yield is abbreviated as APY. This calculates the true rate of return on your principal by factoring in the effect of compounding interest. In the case of DSA, your $DSA tokens represent your principal, and compound interest is applied on each Rebase event (every 15 minutes), also known as a 'Epoch.' Your new primary amount is equal to the sum of your then-current DSA token amount and your new rebase token amount. This sum is used to compute your next rebase rewards.
The Power of Compound Interest - It is vital to understand that your balance will rise exponentially rather than linearly over time. With a compound interest rate of 0.02355 percent every 15 minutes:
EXAMPLE 2: If you started with a balance of only $1,000 on day 1, after a year, your balance will have grown to $3,830,454.