APY and APR
APR is the simple yearly rate; APY includes compounding, so it is higher for the same rate.
Why it matters
Very high APYs are usually paid in volatile tokens or come with big risks. Check where the yield comes from.
Compare DeFi yieldsRelated terms
StakingStaking is locking coins to help secure a proof-of-stake network in return for rewards.…Yield farmingYield farming means moving crypto between DeFi apps to earn the highest rewards.…Impermanent lossImpermanent loss is the value a liquidity provider gives up compared with just holding, wh…
Written by the VaultX AI team. Educational only, not investment advice.
VaultX