What is APY in Crypto?

Seedlingcrypto26 Sep, 2022Business

APY is your annual return on an investment that takes into account compound interest that is accrued on top of your initial investment. This means you?ll earn interest on the initial investment, as well as interest earned on that interest. And that?s how APY works in crypto savings plans and DeFi liquidity pools as well. For example, if you invest 1,000 USDT at 5% APY in a crypto interest account, you?ll earn 1050 USDT at the end of one year from the deposit date.