Annual Percentage Yield — yield expressed with compounding included. For a 10% APR compounded daily, the APY is roughly 10.51%. APY is always greater than or equal to APR for the same nominal rate. DeFi “APY” headlines often assume continuous reinvestment of rewards into the same pool, which is rarely how users actually behave.
APY
Annual Percentage Yield — yield expressed with compounding included. For a 10% APR compounded daily, the APY is roughly 10.51%. APY is always greater than or equal to APR for the same nominal rate. DeFi "APY" headlines often assume continuous reinvestment of rewards into the same pool, which is rarely how users actually behave.
Not financial advice. Information on TheWeal is for general education and reporting. Always do your own research and consult a qualified advisor before making any investment decision. Read our full disclaimer.