What is APY in crypto? Annual percentage yield explained
What does APY mean in crypto? If you are taking part in yield farming, you might have already heard of APY or APR. They are used in many yield farming programs in DeFi protocols.
In this article, we’ll make the explanation of APY in crypto simple and show you how to calculate it in your yield farming. Be patient and read the article to the end as it is not only important but also gives information that helps you to invest more effectively.
APY vs compound interest
First, you must learn the difference between simple interest and compound interest to understand APY in crypto.
Simple interest is the interest earned only on the original deposit while compounding is the process of adding interest earned every…
