APR increased. Does this mean that Binance started earning more on assets in Simple Earn?
Based on this indicator alone, such a conclusion cannot be made.
In its Binance FAQ, the company states directly: APR is set at its discretion and is not an indicator of the profitability of its operations. When determining the rate, the company may take into account competitors’ offers, and for short-term promotions it may use a marketing incentive reserve.
Therefore, an increase in APR by itself does not prove that staking returns increased or that loan demand grew. It may simply reflect product promotion conditions.
For me, this is a useful guideline: APR helps assess the proposed reward, but it does not allow you to reconstruct Binance’s “under-the-hood” economics. I would check a higher rate by its duration and terms, rather than taking it as evidence of greater platform profit.
#BinanceEarn
Based on this indicator alone, such a conclusion cannot be made.
In its Binance FAQ, the company states directly: APR is set at its discretion and is not an indicator of the profitability of its operations. When determining the rate, the company may take into account competitors’ offers, and for short-term promotions it may use a marketing incentive reserve.
Therefore, an increase in APR by itself does not prove that staking returns increased or that loan demand grew. It may simply reflect product promotion conditions.
For me, this is a useful guideline: APR helps assess the proposed reward, but it does not allow you to reconstruct Binance’s “under-the-hood” economics. I would check a higher rate by its duration and terms, rather than taking it as evidence of greater platform profit.
#BinanceEarn
