DeFi | What exactly is the difference between APR and APY?
APR is the annual percentage rate. It doesn't account for compound interest; it simply converts the returns over a period of time into an annual figure.
For the same pool, the APY is generally higher than the APR, so when comparing different products, make sure you're comparing the same metric.
$CAKE is PancakeSwap's native token. DeFi product pages like this often display annualized returns.
Every return comes with corresponding risks, so be sure to understand the worst-case scenario.
#CAKE
APR is the annual percentage rate. It doesn't account for compound interest; it simply converts the returns over a period of time into an annual figure.
For the same pool, the APY is generally higher than the APR, so when comparing different products, make sure you're comparing the same metric.
$CAKE is PancakeSwap's native token. DeFi product pages like this often display annualized returns.
Every return comes with corresponding risks, so be sure to understand the worst-case scenario.
#CAKE