A Rebase Token is one whose circulating supply expands or contracts due to changes in the token price. This increase or decrease in supply works with a mechanism called rebasing. When a rebase occurs, the supply of the token is increased or decreased algorithmically, based on the current price of each token.
$RING takes advantage of a positive rebase formula which increases the token supply allowing holders to keep growing their tokens, like in a traditional staking protocol. However our use of a auto-staking, auto-compounding, rebasing token eliminates the need to approve and traditionally stake your tokens.
With the onset of rebase tokens, it has become possible to payout, huge APY's, However as we have seen with numerous OHM forks, it is simply not possible to inflate a token supply so quickly without the USD value eventually decreasing. We have to counter this inflation, this is where RingFi differs from the competition, we pay slightly less APY in order to have a higher buy-back ratio than any other protocol.