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DeFi

APY (Annual Percentage Yield)

The annualized rate of return on a crypto investment, including the effect of compounding. APY accounts for earning interest on your interest, so it is always higher than APR for the same rate. In DeFi, APY figures can range from a few percent to thousands of percent.

Example

The staking pool offers 8% APY, meaning $1,000 deposited would grow to $1,080 in a year with compounding.

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