By investing $100 USD, we can earn up to $1,822,684 USD in a year. Really surprising, is this possible? How can you make it happen? Or just a sweet approach.
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. With Lanuna Finance, your $LUNU tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 6 minutes), otherwise known as an 'Epoch'.
Your new principal amount is your then-current $LUNU token amount, plus your new rebase token amount. This total amount is what gets calculated for your next rebase rewards.
The Magic of Compound Interest - It is important to note that your balance will grow not linearly but exponentially over time. Taking a compound interest of 0.01120%/6 minutes.
Example 1: If you started with a balance of only 100 $LUNU. After a year, your balance will have grown to 1,822,684.19 $LUNU
Earnings are calculated in a scenario where the RCF sustains the rebase reward for 365 days.