APY
APY — annual percentage yield — is the yearly return on an investment assuming rewards are reinvested and compounded. A 20% APY means a deposit roughly gro
APY — annual percentage yield — is the yearly return on an investment assuming rewards are reinvested and compounded. A 20% APY means a deposit roughly grows 20% per year if the rate stays steady and you keep compounding.
Why it matters
APY is the headline number of every staking/lending pitch, but it’s a projection, not a promise: rates move, prices move, and “APY” is often quoted in a token that’s declining. High APY is a *warning light*, not just an opportunity — especially when it’s denominated in new minted tokens.