Let's talk about the difference between APR and APY.
The higher the APR, the bigger the gap compounding creates: at 100% APR compounded daily, the APY is about 171.5%.
One thing that's easy to overlook: annualized figures often include rewards paid in tokens, valued at their current price. If the reward token's price falls, your actual returns will shrink.
Before comparing returns, check whether the figure is APR or APY.
$CAKE is PancakeSwap's native token, and DeFi product pages like this often display annualized returns.
#CAKE
Just one person's opinion—take it with a grain of salt. This is not advice.
The higher the APR, the bigger the gap compounding creates: at 100% APR compounded daily, the APY is about 171.5%.
One thing that's easy to overlook: annualized figures often include rewards paid in tokens, valued at their current price. If the reward token's price falls, your actual returns will shrink.
Before comparing returns, check whether the figure is APR or APY.
$CAKE is PancakeSwap's native token, and DeFi product pages like this often display annualized returns.
#CAKE
Just one person's opinion—take it with a grain of salt. This is not advice.