What is the meaning of APY in the crypto industry?

1 answers

• May 11, 2022 · 3 years ago
  APY, short for Annual Percentage Yield, is a metric used in the crypto industry to measure the potential returns on investments. It takes into account factors such as compounding and the frequency of interest payments to provide a more accurate representation of the earnings. APY is commonly associated with staking and lending cryptocurrencies, where users can earn passive income by participating in these activities. Different platforms and protocols may offer varying APY rates, so it's important to compare options and consider the associated risks before making any investment decisions. Keep in mind that APY is not guaranteed and can be influenced by market conditions and other factors.
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