What is APY?

APY stands for annual percentage yield. It is a way to calculate interest earned on an investment that includes the effects of compound interest. In traditional finance, APY is used for things like savings accounts and certificates of deposit. In crypto, there are many ways to earn interest on your cryptoassets, and it’s not uncommon for APY to exceed 10% – far beyond what’s considered a high rate in traditional finance. Indeed, according to Bankrate, the average bank savings interest rate in the U.S. is well under one percent.
What is APY?

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