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user-guides/how-to-df-estimate-apy.md
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Passive Rewards APY and get deeper into Active Rewards APY.
---
<figure><img src="../.gitbook/assets/gif/mafs.gif" alt=""><figcaption><p>K,I.S.S.</p></figcaption></figure>
<figure><img src="../.gitbook/assets/gif/mafs.gif" alt=""><figcaption><p>K.I.S.S.</p></figcaption></figure>
# veOCEAN and your APY
Before we start, let's do a quick recap.
Rewards are earned by users that hold and use their veOCEAN to help the protocol improve and grow. Here are some good lessons to improve the outcome of your APY.
1. To improve your yield, you will need to make good decisions for how long you'll choose to lock. The best way to do this is to learn how [Time Locking](/rewards/veocean.md#veocean-time-locking) and [Linear Decay](/rewards/veocean.md#linear-decaywork) function.
2. APYs are always initially calculated by dividing the amount of OCEAN you have received from rewards, by the relative amount of OCEAN you have locked up.
3. As a rule: _Wherever APYs are provided to the user in the app (df.oceandao.org), they are caclulated assuming an initial 4-year lock up period with a weekly schedule of compounding rewards into an updated 4-year lock. This estimate works provided current: number of users, reward emissions, and other reward parameters stay constant while excluding all tx fees_
Having said all of this, let's try to keep it as simple as possible.
Having said all of this, let's work through it and try to keep it as simple as possible.
### Estimating Passive APY