# APY Calculations

**APY** (Annual Percentage Yield) reflects the annualized return with compounding factored in. This is particularly useful for restaking, as Renzo auto-compounds rewards received from both staking and restaking, allowing users to save on gas fees and receive additional rewards.

1. **Auto-compounding**
   * Staking and restaking rewards are automatically redeposited into the protocol, increasing the amount of collateral a user is able to claim without increasing the supply of the asset. Thus, the price of the asset increases as rewards are harvested. No manual claiming is required.
2. **Determining APY**

* The APY displayed in the app is calculated directly from the asset’s price change over a trailing observation window (default **30 days**) and annualized:

&#x20;`APY = (1 + (Δprice / starting price))^(365 / days) - 1`

* **Δprice** = current price – starting price
* **Starting price** = price at the beginning of the window
* **Days** = number of days in the look-back period (defaults to 30)


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