PandoraX Whitepaper

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APY

Annual Percentage Yield

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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.

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.

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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
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- A = P(1 + rt)

- Calculate Principal Amount, solve for P
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- P = A / (1 + rt)

- Calculate rate of interest in decimal, solve for r
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- r = (1/t)(A/P - 1)

- Calculate rate of interest in percent
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- R = r * 100

- Calculate time, solve for t
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- t = (1/r)(A/P - 1)

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)

Last modified 6mo ago

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