ZLaunch Detailed APY Calculation
ZLaunch’s APY is equal to APR.
APY stands for annual percentage yield and typically takes into account compound interest. APY can also be referred to as EAR, or effective annual rate.
APR stands for annual percentage rate and does not take into account compound interest.
As ZLaunch rewards you with new digital tokens for a period of typically 30 days on an hourly basis, there is no compounding interest when you lock ZMT for rewards, hence ZLaunch’s APY = APR.
|ZLaunch Project’s Token Price||USD $0.001 assumed for this example|
|Total Token Rewards||30 million tokens|
|Earning Period||30 days|
|Total Hourly Token Rewards||Total Token Rewards ➗ Earning Period ➗ 24 hours = 30 million tokens ➗ 30 days ➗ 24 hours = ~41,666.66666666 Tokens|
|USD value of Total Hourly Tokens Rewards||Total Hourly Token Rewards * Token price = 41,666.66666666 * $0.001 = USD $41.666|
|USD value of Total ZMT locked||USD Value of ZMT * Total ZMT Locked This varies on the USD value of ZMT and Total ZMT Locked. Assume for this example the value of Total ZMT locked is USD $4,000,000.|
APR and APY formula
|APR||APR= (USD Value of Hourly Token Rewards ➗USD Value of Total ZMT locked ) X 24 X 365 = $41.666 / $4,000,000 X 24 X 365 = 0.09124854 = ~9.12%|
|APY equals APR||APY = (1 + R/n)^n – 1 where R = interest rate which is APR =9.12% where n = compounding period (which is once per year as each project occurs once) =1 APY = (1+(9.12%/1))^1 – 1 = 9.12% Therefore in this example, APY = 9.12%.|