Lending Mechanics
APY (Annual Percentage Yield)
The effective annual return on deposits, including the effect of compounding. An APY of 5% on a lending platform means your deposit grows by 5% per year if rates remain constant.
Why APY (Annual Percentage Yield) Matters
Understanding apy (annual percentage yield) is essential for anyone participating in crypto lending or DeFi markets. This concept directly impacts how you evaluate platforms, manage risk, and optimize returns.
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