Alright cappies! (Cappies sound nice aye? Has nice fomo ape vibe about it.🐵)
APY — Annual Percentage Yield
APR — Annual Percentage Rate
We come across these terms ALOT on farming, staking, liquity providers on many crypto websites. Sounds confusing to me but i did some google time and found out the main difference is simply “compounding”!
Sidestory: Pancake Bunny is one of the top farms in the #bsc ecosystem and they were hit by a flash loan attack which resulted in >90% drop in the price of $BUNNY. Anyhow, I was very impressed with their recovery PR/plans and how they handled the entire debacle, you can read more about it here 🐰 !
Back to the main story —
APY — Projected annual yield when compounded daily
APR — Original annual yield with NO compounding
Which is better; APR or APY?
Well, that depends on alot of factors, largely on your risk appetite too. As a start, compare projects using the right numbers. DO NOT BE FOOLED BY HIGH APY NUMBERS!! There are various APR to APY conversion calculators online which will come in handy.
Personally, I am a more hands-on person so I tend to choose projects with higher APR. That way I have more control of my farming/staking rewards and potentially use them to ape into other projects/opportunities. 🐵🐵
Alright cappies, stay safe and I will see you soon!
