📩Annual Percentage Yield (APY)

It is very common to come across the acronym "APY" in farms and pools. Understand what this value represents below.

When investing in a pool or farm, it is common to observe the acronym APY (Annual Percentage Yield). It represents the annual return on that investment at that very moment, that is, it is an instantaneous value that represents a projection based on current conditions.

The APY indicator is not a fixed interest rate! It is a parameter used only as a reference by investors to have an expectation of return. Remember that APY tends to vary a lot, especially at launch. Over time, these values ​​tend to stabilize.

For comparison purposes, as of this writing, a stake investment in PancakeSwap is indicating an APY of 40%. This means that, when investing the equivalent of US$100, the investor will have at the end of one year a reward of US$40 (in addition to the US$100 initially invested). Bearing in mind that these amounts are quoted in fiat currency, so the variation in the value of assets directly influences the yield.

APY can be influenced by several factors, including:

• Number of people sharing the same income;

• Appreciation of the token used as a reward.

Reward participation

When applying REAUs to a pool/farm, you will receive a portion of the reward in AURO in proportion to your participation in the pool. That is:

1. Assuming there are 100 billion REAUs allocated in the pool..

2. 10 of these 100B belong to Maria, that is, her participation in this pool is 10%.

3. Maria will receive 10% of the rewards allocated to this pool.

The APY estimate is applied equally to all participants. Therefore, it does not vary according to pool participation.

It is very important to understand that this value is a "photograph" and represents the conditions at the time the investment is made. It does not represent a promise of profit or pre-fixed interest. APY values vary very often depending on conditions (for example, number of people participating, reward distribution and token quote).