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

   • APY is determined algorithmically based on a trailing 30-day average.

   • This calculation compares the assets price from 30 days ago to the current price, then annualizes them.

   • At times, the APY may fluctuate in both directions based on the amount of rewards received and the frequency.