# 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 Compound Protocol, your $CProtocol tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 30 minutes), otherwise known as an 'Epoch'.

One fascinating aspect of APY is that your balance will grow exponentially rather than linearly over time! Assuming a daily compound interest rate of 0.02355% percent, if you begin with a balance of 1 $CProtocol on day 1, your balance will increase to around 350,000 $CProtocol after a year. Compound interest has that kind of power!

Now just imagine how much you will earn if you start your investment with $1000. $CProtocol will open new possibilities to DeFi and APY with its reward system.

![](https://568225943-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FY7SsMXcO1lcxYvbW6gEn%2Fuploads%2FUijakIgAnX6xVn6dGCzW%2FPage%205-1.png?alt=media\&token=3df65129-fb97-43c7-867f-2047b3b4937c)


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