Tokenomics & On-chain

What is the difference between APR and APY in crypto staking?

APR (annual percentage rate) is the simple yearly rate on staked crypto without compounding, while APY (annual percentage yield) includes the effect of compounding rewards over the year. APY is therefore higher than APR for the same underlying rate when rewards are reinvested. For example, a 10 percent APR compounded daily works out to roughly 10.5 percent APY. Quoted staking rates are variable and depend on network conditions, validator performance, and token price, so an advertised yield is an estimate rather than a fixed outcome.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.