Annual Percentage Yield — the real rate of return accounting for compound interest over a year. A 10% APY with daily compounding yields more than 10% APR. The standard metric for comparing DeFi yields.
Annual Percentage Yield — the real rate of return accounting for compound interest over a year.
A 10% APY with daily compounding yields more than 10% APR.
The standard metric for comparing DeFi yields.
This is a key building block of decentralized finance. Understanding it helps you navigate DeFi protocols safely, evaluate yield opportunities, and avoid common pitfalls.