Crypto 101 📚 The difference between APR and APY
The higher the APR, the more noticeable the effect of compounding: at 100% APR compounded daily, the APY is about 171.5%.
For the same APR, the more often interest is compounded, the higher the APY—but the increase gets smaller and smaller, and there is a limit.
You only understand after learning the hard way: always check the rules first.
$CAKE is PancakeSwap’s native token. DeFi apps like this often display annualized returns.
The higher the APR, the more noticeable the effect of compounding: at 100% APR compounded daily, the APY is about 171.5%.
For the same APR, the more often interest is compounded, the higher the APY—but the increase gets smaller and smaller, and there is a limit.
You only understand after learning the hard way: always check the rules first.
$CAKE is PancakeSwap’s native token. DeFi apps like this often display annualized returns.