How is Annual Percentage Yield (APY) calculated?
In essence, the APY represents the nominal annual rate of return, accounting for the compounding of staking rewards, both at the pool level and individually. The APY for staking in the Houdini Swap Staking Program is determined through the following methods:
Staking Pool APY
Total Rewards Basis: It’s the annual projected compound return calculated based on the total rewards earned per second.
Proportion to Total Stake: This return is expressed as a percentage of the total $LOCK staked in the pool.
Individual APY Calculation
Personalised Returns: Your specific APY is also the annualized compound return, but is based on the rewards you earn per second.
Relative to Your Stake: This is calculated as a percentage of your total $LOCK staked.
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