🤽♂️Details of APY — PERI Finance dApp
What is APY?
When staking cryptocurrency assets, APY (Annual Percentage Yield) is one of the most crucial factors to consider for optimal efficiency. APY stands for Annual Percentage Yield and is the projected rate of annual return after taking compounding interest into account. In order to understand how APY is calculated, it is important to understand compound interest.
In essence, compound interest is interest earned on previously earned interest. For example, let’s say you deposit $1USD into a CD(Cash Deposit) savings account at your bank with a simple interest of 1%. You are constantly receiving same amounts of monthly interest: $0.00083 ($0.01 for the annual interest)
Let’s assume that you deposit $1USD into a CD savings account at your bank with an APY of 1%. Your primary monthly interest is $0.00083. However in second month, your monthly interest is increased to $0.00084. It is because the interest that received in previous month is added to your deposit. As the your deposit value increased, your interest also increases. We call this as compound interest.
Key Features
Unified APY: Users receive the same APY regardless of the blockchain they choose, providing a stable and predictable earning potential.
LP Staking Differences
APY on PERI/BNB and PERI/MATIC LP
The APY for liquidity pool (LP) staking on PERI/BNB and PERI/MATIC pairs varies and is influenced by several factors. This system is also applied in PERI Finance’s staking dApp. If you stake PERI LP into the staking pool, you can receive different APYs based on the mainnet.
APY Data as of May 17th, 2024:
PERI/BSC LP APY: Approximately 25.72%
PERI/Polygon LP APY: Approximately 51.47%
Reason for APY Variation:
APY is affected by the amount of tokens (PERI LP) staked on each mainnet. The more tokens staked on a certain mainnet, the lower the APY appears on the dApp. This is because rewards are distributed among a larger pool of staked tokens, diluting individual returns.
Disclaimer
Any APY is subject to change based on the number of users staking their PERI, as well as the market volatility. This is the initial absolute APY rate based on this exact time’s conditions, without any guarantee and are non-binding, they are listed solely for information purposes.
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