Staking
Staking is comparable to depositing money in a savings account in the world of cryptocurrencies. The distinction is that the bank ends out the money you deposit in your savings account to others and splits the interest with you. When you stake your cryptocurrency, you encrypt your digital assets and help keep a blockchain network secure while also collecting incentives.
OzProtocol Reward APR
Reward per year
Blocks per year*Reward amount =10512000*0.02
where Reward per block value =0.02
Reward USD value
USD value *Reward amount per year=63.96*210240=13446950.4$
Total Pool stake USD value
USD value*Total stake amount= 500*1.5=750$
APR (Annual Percentage Rate)
Reward amount per year USD value*Total stake amount USD value*100=13446950.4$/750$=1792926.72%.APR
Definition: APR
APR is the total cost of borrowing money each year, including fees. Since it accounts for both interest rates and any costs you must pay to obtain the loan, the annual percentage rate (APR) is a more comprehensive indicator of how much borrowing will cost you.
How does the Annual Percentage Rate works ?
An interest rate is expressed as an APR (Annual percentage rate). It accounts for factors like monthly payments and fees to determine what proportion of the principal you'll pay annually. APR is another term for the yearly rate of interest paid on investments that does not consider the annual compounding of interest.
How do you calculate APR ?
APR is derived by dividing the periodic interest rate by the total number of periods in the year. How frequently is the rate really applied to the amount is not used ?.
APR=(((fees+interest)/principal/n)*365)*100
Where,
Interest=total interest paid over life of the loan
Principal=Loan amount
n=number of days in loan term
Note:
Block=3sec
1hour = 3600 sec
3600/3sec=1200
1 hour = 1200block
1200block*24hour=28800(1day)
28800block x30days=864000(1month)
28800block x 365= 10512000(12month)
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