APY stands for Annual Percentage Yield. This measures the real rate of return on your principal tokens amount by taking into account the effect of compounding interest. In the case of Oceans Finance, your $OCEANS tokens represent your principal, and the compound interest is added periodically on every Rebase event.
$OCEANS rewards holders with a deflationary APY that starts at 42,069% Annual Percentage Yield. Multiple functions work in conjunction to make this sustainable. This is achieved by a sophisticated Rebase Mechanism. All token holders receive rewards, every 30 minutes, and it includes auto-staking & auto-compounding features.
The APY goes through a deflationary process known as halving, every 30 days the APY will be reduced by 10% from what it was previously, providing additional sustainability to the protocol.