Growth of your $1,000.00 principal.
| Period | Compounded % | Estimated Profit |
|---|---|---|
| Daily | 0.1370% | $1.37 |
| Monthly | 4.2517% | $42.52 |
| Yearly (APY) | 64.8157% | $648.16 |
Growth if you HODL and restake
Growth if you HODL and restake
Formula: A = P(1 + r/n)^(nt). We calculate the future value based on your initial deposit, compounding frequency (n), and total duration (t).
Compound APY accounts for the 'interest on interest'. By restaking your rewards, you increase your principal, which then generates even more rewards in the next cycle.
APR is the flat linear rate. APY is the effective rate after compounding. At 100% APR with daily compounding, your APY is actually 171%—a massive difference.
The more often you compound, the higher the yield. However, in DeFi, frequent compounding increases gas costs. There is always a mathematical 'optimal' frequency.
Linear returns are easy to predict, but they fail to capture the exponential growth needed to outpace inflation or maximize capital efficiency in high-yield protocols.
