What Is APY?
APY stands for Annual Percentage Yield. It represents the total return you would earn on your staked amount over one year, expressed as a percentage. APY accounts for the effect of compounding — earning rewards on top of previously earned rewards.
APY vs APR
- APR (Annual Percentage Rate) — Simple interest, does not account for compounding.
- APY (Annual Percentage Yield) — Includes compounding effect.
XamanProtocol displays APY because it more accurately represents your true returns when rewards are reinvested.
How XamanProtocol Calculates Earnings
Your daily earnings are estimated as:
`Daily Earnings ≈ (Staked Amount × APY) ÷ 365`
Example: 1,000 XRP staked at 10% APY:
- Daily earnings ≈ 0.274 XRP/day
- Monthly earnings ≈ 8.22 XRP
- Annual earnings ≈ 100 XRP
Actual amounts may vary slightly based on compounding frequency.
Fixed vs Variable APY
Fixed APY (Locked Pools):
When you open a locked staking position, the APY shown at the time of staking is locked in for the duration of the lock period. Even if pool rates change after you stake, your position earns the original guaranteed rate.
Variable APY (Flexible Pool):
The flexible pool's APY may change based on pool conditions, total pool size, and platform parameters. The rate shown is the current rate and may go up or down.
Estimating Your Earnings
The Staking page shows a projected earnings calculator when you enter your stake amount. This shows:
- Daily estimated earnings
- Total projected earnings at maturity
- Projected maturity value (principal + earnings)
These are estimates. Fixed pool projections are guaranteed rates. Flexible pool projections are estimates based on the current rate.