APR & APY Explained easily
APR is the yearly return without compounding it shows what you earn in a year if rewards are not reinvested automatically
APY is the yearly return with compounding it shows what you earn in a year when rewards are reinvested automatically or you compound them yourself
If APR is 12 percent and you do not compound you get about 12 percent over one year
If APR is 12 percent and you compound daily weekly or monthly the APY becomes higher because you earn on your earned rewards
APY depends on how often compounding happens more frequent compounding means higher APY
In crypto many rates are variable APY can change fast with demand emissions and price moves
High APY is not guaranteed profit token price drops fees impermanent loss and lockups can reduce or wipe gains
ps dont forget to add our thursday stream @ Giovanni - TEAM MATRIX
Friday i got a little show too thx to @Binance Square Official @Daniel Zou (DZ) 🔶 @EarnPii - TEAM MATRIX - TANK TinkTank
sincerely
Keanu