Fixed APY and APY Backing

Annual Percentage Yield

APY stands for Annual Percentage Yield. This measures the real rate of return on your principal amount by taking into account the effect of compounding interest. In the case of OTO Protocol, your $OTO tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 15 minutes), otherwise known as an 'Epoch'.

Your new principal amount is your then-current OTO token amount, plus your new rebase token amount. This total amount is what gets calculated for your next rebase rewards.

The Power of Compound Interest - It is important to note that your balance will grow not linearly but exponentially over time. Taking a compound interest of 0.02355% / 15 minutes:

EXAMPLE 1: If you started with a balance of only 1 $OTO on day 1, after a year, your balance will have grown to 3829.45 $OTO.

EXAMPLE 2: If you started with a balance of only $1,000 on day 1, after a year, your balance will have grown to $3,830,454.

APY is backed through a comprehensive RFV structure which takes advantage of the trading volume fees in order to back the staking rewards (rebase rewards).

When the daily RFV gains are greater than or equal to all the Holders Daily ROI, this means that the Swap Threshold can fill the plus-value generated from the Rebase Rewards

If the daily RFV gains are lower than the Holders Daily ROI, a portion of the Treasury is added to fill the difference.