Someone asked: What exactly is the difference between APR and APY?
My answer: For the same APR, the more frequently interest compounds, the higher the APY—but the increase gets smaller and smaller, and there’s an upper limit. For the same pool, the quoted APY is usually higher than the APR. When comparing two products, make sure you’re comparing them on the same basis.
$CAKE 1.87 (+1.63%)
If there’s anything I haven’t covered, let me know in the comments.
My answer: For the same APR, the more frequently interest compounds, the higher the APY—but the increase gets smaller and smaller, and there’s an upper limit. For the same pool, the quoted APY is usually higher than the APR. When comparing two products, make sure you’re comparing them on the same basis.
$CAKE 1.87 (+1.63%)
If there’s anything I haven’t covered, let me know in the comments.