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Annual Percentage Yield APY is and APY is essential for and bad, depending on the context and associated risks.
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APR vs APY (Yield Farming) What's the Difference?For instance, if you borrow $1, at a 5% annual interest rate with no additional costs, your APR is simply 5%. On the other hand, APY accounts. Annual percentage yield (APY) refers to how much interest you earn on savings and takes compound interest into account. Annual percentage rate (APR) focuses. APY measures the interest investors earn on crypto savings accounts, whereas APR measures the amount of interest borrowers must pay on crypto.
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