How Y2R Finance works

1. interest and compound interest:
You have $1,000 in your bank account and you earn a 50% annual return on your investment. After 12 months, you will own $1,500 in total.
Compound interest is interest on interest. You get interest on the initial amount you put in, and you get interest on the interest already accumulated from the previous years. So with compound interest, after 1 year you'll actually have $1,649, your money actually grows by 65%!
The 65% and 50% of profit here is Annual percentage rate (APR) and Annual percentage yield (APY). Albert Einstein reportedly referred to compound interest as mankind's greatest invention, and will bring tremendous power to your property growth!
2. reward token on Canto and compound interest:
When you stake your Canto LPs on CLM, you will receive reward tokens(WCanto) as profit. At the time of writing this doc, CantoNoteLP achieves an APR of up to 270%. However, if you do not frequently withdraw the reward tokens, exchange them for another token and form LP and deposits the LP token again, your annual profit will become only 99% APY, losing a large proportion of profit you are supposed to gain. (Comparison can be seen in the following graph).
This is where Y2R Finance will help you. We will harvest automatically and frequently, making your APY really change to APR!
You can learn more details about the how our protocol works through the following pages.