CRYPTO GLOSSARY · FINANCE

What is APY?

Annual Percentage Yield with compounding.

📖 Full Definition

APY (Annual Percentage Yield) is the real rate of return on an investment, accounting for compound interest. In crypto, APY is commonly used to describe staking and DeFi yield farming returns.

💡 Example

A staking pool offering 10% APY would turn $1,000 into $1,100 after one year with daily compounding.

🔗 Related Terms

Staking

Locking crypto to earn rewards and secure networks.

Yield Farming

Earning rewards by providing crypto liquidity.

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