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docs/data-farming/apys.md
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From emissions, estimate APYs

APYs

Multiply, and multiply again. And again.

This page is about APYs. There's also estimates of APY vs time and a guide to estimating APYs.

About APYs

Source of Rewards

Rewards are earned by users that participate in one or more Data Farming streams. Passive DF allows passive holding of veOCEAN; Active DF streams require more work from the user.

Historically, annual percentage yields (APYs) are 5-15%. See for yourself: in DF app and scroll down to "Data Farming History".

You can do your own APY estimations. In Passive DF, APY is highly dependent on the locked amount and duration of lock. In other DF streams, there are other factors.

Definition of Yield, WPY, APY

A yield is the relative gain in value compared to the amount you started with. Specifically:

yield = (start amount + gained amount) / (start amount) - 1.0

For example, if you start with 1000 OCEAN and earn 5 OCEAN:

yield = (1000 + 5) / (1000) - 1.0 = 0.005

We can express yield as a percentage simply by multiplying by 100 (%). For example, yield of 0.005 in percentage is 0.005 * 100% = 0.5%.

The yield for one week is Weekly Percentage Yield, or WPY. For example, if you started with 1000 OCEAN and earned 5 OCEAN from DF, in one week, then your WPY = 0.005 = 0.5%.

The yield for one year is Annual Percentage Yield, or APY. APY can be estimated from WPYs. Assuming no compounding, APY = WPY*52. We drill deeper in the guide to estimate APYs.