Good Night Builders 💙
Best STON.fi Farming Pool of the Week
APR vs APY: Don't Let a Big Number Fool You
When exploring DeFi farming opportunities, you may see terms like APR and APY next to a pool's rewards.
But they don't mean the same thing.
APR shows the annualized return without assuming that rewards are compounded.
APY takes compounding into account, meaning rewards are assumed to be reinvested over time.
This difference matters because a higher number doesn't automatically mean a better opportunity.
Before choosing a @STONfi DEX farming pool, look beyond the displayed percentage. Consider the assets involved, the reward structure, market conditions, and the risks associated with the strategy.
Today's lesson:
Don't chase the highest APY understand what you're earning and what you're risking.
In DeFi, knowledge should always come before yield.
When you see a farming pool with a high APY, what's the first thing you check?
#STONfi #STON #TON #DeFi #YieldFarming
Best STON.fi Farming Pool of the Week
APR vs APY: Don't Let a Big Number Fool You
When exploring DeFi farming opportunities, you may see terms like APR and APY next to a pool's rewards.
But they don't mean the same thing.
APR shows the annualized return without assuming that rewards are compounded.
APY takes compounding into account, meaning rewards are assumed to be reinvested over time.
This difference matters because a higher number doesn't automatically mean a better opportunity.
Before choosing a @STONfi DEX farming pool, look beyond the displayed percentage. Consider the assets involved, the reward structure, market conditions, and the risks associated with the strategy.
Today's lesson:
Don't chase the highest APY understand what you're earning and what you're risking.
In DeFi, knowledge should always come before yield.
When you see a farming pool with a high APY, what's the first thing you check?
#STONfi #STON #TON #DeFi #YieldFarming