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 ACP, your $ARIS tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 10 minutes), otherwise known as an 'epoch'.
Your new principal amount is your then-current $ARIS 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 0.015012%/10 minutes.
Example: If you started with a balance of only 50 $ARIS. After a year, your balance will have grown to 133,484.14 $ARIS
Example 2: If you started with a balance of only 1,000 $ARIS. After a year, your balance will have grown to 2,669,682.98 $ARIS
- A = Total Accrued Amount (principal + interest)
- P = Principal Amount
- i = Interest Rates per epoch
- n = The number of epochs in the period to be calculated
Example: You start with 100 $ARIS at an interest rate of 0.015012%/epoch and you hold for 1 year. So after 1 year you will receive the amount (Principal + Interest) as: 266,968.29 $ARIS