Annual Percentage Yield — the total return you earn on a crypto deposit or investment over one year, including the effect of compounding.
Think of it like the interest rate your savings account advertises, but often much higher (and riskier) in crypto.
Comparing APY across platforms helps you find the best returns, but extremely high APYs are often a red flag for unsustainable projects.
Watch out for sky-high APYs (like 1,000%+) — they usually come with extreme risk, and the value of the token you earn can crash, wiping out your gains.
Locking up your crypto to help run a blockchain network, and earning rewards in return — similar to earning interest at a bank.
Decentralized Finance — financial services like lending, borrowing, and earning interest, built on blockchain and available to anyone without needing a bank.
A shared pot of crypto tokens locked in a smart contract that enables trading on a decentralized exchange — users deposit tokens and earn fees in return.
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