PandoraX Whitepaper
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# APY

Annual Percentage Yield
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 Pandora X Protocol, your \$PANX tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 5 minutes), otherwise known as an 'Epoch'.
Your new principal amount is your then-current \$PANX token amount, plus your new rebase token amount. This total amount is what gets calculated for your next rebase rewards.
The Power of Compound Interest - It is important to note that your balance will grow not linearly but exponentially over time. Taking a compound interest of 0.03677% / 5 minutes
Example: If you started with a balance of only 1 \$PANX on day 1, after a year, your balance will have grown to 5348.05 \$PANX.
APY Calculations
Calculating APY
Simple Interest Equation (Principal + Interest)
A = P*(1 + r*T)
Where:
• A = Total Accrued Amount (principal + interest)
• P = Principal Amount
• I = Interest Amount
• r = Rate of Interest per year in decimal; r = R/100
• R = Rate of Interest per year as a percent; R = r * 100
• T = Time Period involved in months or years
From the base formula, A = P (1 + rt) derived from A = P + I and since I = Prt then A = P + I becomes A = P + Prt which can be rewritten as A = P(1 + rt)
Note that rate r and time t should be in the same time units such as months or years.
Time conversions that are based on day count of 365 days/year have 30.4167 days/month and 91.2501 days/quarter. 360 days/year have 30 days/month and 90 days/quarter.
Simple Interest Formulas and Calculations:
A is the Final Investment Value, using the simple interest formula: A = P(1 + rt)
P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods.
Where r is in decimal form; r=R/100; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)
• Calculate Total Amount Accrued (Principal + Interest), solve for A
• A = P(1 + rt)
• Calculate Principal Amount, solve for P
• P = A / (1 + rt)
• Calculate rate of interest in decimal, solve for r
• r = (1/t)(A/P - 1)
• Calculate rate of interest in percent
• R = r * 100
• Calculate time, solve for t
• t = (1/r)(A/P - 1)
Interest Cycle
Long Period Interest Cycle
To maintain sustainability and future growth, we are using a Long-term Interest Cycle component which will award \$PANX token holders with continued compound interest in perpetuity.
Each Interest Cycle is 5 minutes in length and is referred to as an EPOCH.
There are 105,120 EPOCHS in 1 year.
Interest rate as mentioned below:
• EPOCH 1 - 105,120: 0.03677% every EPOCH (First 12 Months)
• EPOCH 52,560 - 78,840: 0.0010% every EPOCH (Next 6 months)
• EPOCH 78,840 - 245,280: 0.0004% every EPOCH (Next 6.5 Years)
• EPOCH 245,281: 0.00002% every EPOCH (In Perpetuity until max supply is reached)