# Bonus Multiplier

The bonus multiplier is the key component behind the dynamic rebase mechanism of USDO balances which can be illustrated in the following balance formula of USDO:

$$
USDO Balance= shares \*bonusMultiplier
$$

The bonus multiplier will be programmatically updated daily including weekends to give users a fair reflection of the interest earned at a predetermined rate set by OpenEden Digital (“OED”) the issuer of the USDO stablecoin. USDO token holders should expect to see their balances increase daily due to this adjustment in bonus multiplier.

Note: The APY will be preset by the issuer and may be adjusted periodically based on market conditions.

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