šŸ“ˆAPR vs APY


Annual percentage rate (APR) expresses the yield a user will earn on the initial value they entered in a vault. This does not include interest earned on the previously earned yield.

APR Calculation:

APR=Pāˆ—TAPR = P * T

P - Periodic Rate

T - Time in Vault


Annual percentage yield (APY) expresses the total yield a user will receive after a year of holding his assets in a vault, factoring in compound interest. This means that the yield previously earned with be put to work and will now earn yield too.

APY Calculation:

APY=(1+r/n)nāˆ’1APY = (1 + r/n)^n - 1

r - Rate of interest for the period

n - the amount of compounding periods

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