# sUSDe Rewards Mechanism Ethena calculates APY weekly as part of internal accounting when distributing APY to the [StakingRewardsDistributor contract](https://etherscan.io/address/0xf2fa332bd83149c66b09b45670bce64746c6b439#code) which then drips it into sUSDe. The APY calculated by Ethena matches funding and rewards earned from backing assets earned on a given day to the backing assets on that day, assuming nothing is distributed to the reserve fund. However, to prevent lumpy distributions which people can arbitrage, and because its not currently feasible for Ethena to distribute more frequently than weekly, sUSDe rewards are distributed the week after the period to which they relate, in multiple smaller payments throughout the week. In that period, the USDe supply can increase or decrease, as can the % of USDe supply staked. This can cause distortions between the APY we publish, and a number that's just based on the most recent 8 hourly payment to sUSDe, as seen on some data aggregator sites. Ethena's APY is also annualized with weekly compounding reflecting the compounding interval users actually experience. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ethena.fi/solution-overview/protocol-revenue-explanation/susde-rewards-mechanism.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.