APY stands for Annual Percentage Yield. This measures the real rate of return on your principal amount by taking into account the effect of compounding interest. In the case of Inu Base, your $INUB tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 8 minutes), otherwise known as an 'Epoch'.
Your new principal amount is your then-current $INUB token amount, plus your new rebase token amount. This total amount is what gets calculated for your next rebase rewards.
The Magic of Compound Interest - It is important to note that your balance will grow not linearly but exponentially over time. Taking a compound interest of 0.01510%/8 minutes.
- Example 1: If you started with a balance of only 1 $INUB. After a year, your balance will have grown to 20,331.99 $INUB
- Example 2: If you started with a balance of only $100. After a year, your balance will have grown to $2,033,199.56