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Planning to jump into yield farming? Hold up—let's break down the numbers first.
APR is your starting point. It shows you the base annual return rate before any compounding magic happens. Think of it as the raw percentage the protocol promises.
APY? That's the real deal. It factors in compounding—reinvesting your earnings to earn on those earnings. Over time, APY paints the actual picture of what lands in your wallet.
Here's the catch: neither is set in stone. As liquidity shifts and market conditions change, these rates move with them. What looked juicy yesterday might look different today. Always run the math on current rates before committing capital.