🔄Compounding & Tiers
You will understand how we defined our APR here.
Compounding
Island Nodes enables you to either claim or compound your node every 12 hours.
If you compound, a boost (compound bonus) will be applied to your node.
Whenever you have compounded enough to reach the next tier, your island is upgraded.
Here is an example:
The maximum daily return is reachable with a City Island and 540 compounds.
Indeed:
1.11% + (0.00175%*compounds) = Daily APR
1.11% + (0.00175%*540) = 1.11% + 0.945% = 2.055%
If you claim your rewards, you will go back to tier 1 but you will keep what you have compounded.
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