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APY (annual percentage yield)

Yield & returns

Annualised return of a pool or product, usually the trailing rate as reported by the protocol. It is a backward-looking observation, not a promise.

Displayed APY typically combines a base rate (from lending demand or trading fees) and a reward rate (from incentive token emissions). The two behave very differently: base rates reflect real demand, reward rates reflect a marketing budget that can end without notice.

APY is also sensitive to the measurement window. A pool that spiked for six hours can show a headline number it will never repeat.

Why it matters

Comparing headline APYs without splitting base from rewards is the most common way stablecoin holders mis-price risk.

See it in action

Related terms

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