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How The APY Is Calculated

Calculating APY

Compound Interest Equation

A=P(1+r)nA = P(1 + r)^n
Where:
  • A = Total Accrued Amount (principal + interest)
  • P = Principal Amount
  • r = Rate of Interest for each epoch (3 seconds)
  • n = # of epochs
We have: r = 0.000000858% 3 second = 1 epoch 1 year = 10512000 epochs
So:
A=P(1+0.000000858)10512000=P(1+8259.92)A = P(1 + 0.000000858)^{10512000}= P(1+8259.92)
So it means,
APY=(A/P−1)∗100=825992.73APY =(A/P -1)*100 = 825992.73 %
Same goes to other time periods.
Amonth=P(1+0.000000858)20∗60∗24∗30=P(1+1.0986)A_{month}=P(1+0.000000858)^{20*60*24*30}=P(1+1.0986)
Aweek=P(1+0.000000858)20∗60∗24∗7=P(1+0.1888)A_{week}=P(1+0.000000858)^{20*60*24*7}=P(1+0.1888)
Aday=P(1+0.000000858)20∗60∗24=P(1+0.025)A_{day}=P(1+0.000000858)^{20*60*24}=P(1+0.025)
Ahour=P(1+0.000000858)20∗60=P(1+0.001)A_{hour}=P(1+0.000000858)^{20*60}=P(1+0.001)
Aminute=P(1+0.000000858)20=P(1+0.0000171)A_{minute}=P(1+0.000000858)^{20}=P(1+0.0000171)
0.0000858% per block (3 seconds) 0.00171% per minute 0.1% per hour 2.5% per day 18.88% per week 109.86% per month 825,992.73% per year (APY)

Example:

P = $1,000
A = (After 1 year) = $ 8,260,927.34