APR vs APY in Crypto Earn — Rates, Fees & Realized Returns

Understand rate assumptions before comparing lending, vaults and staking.

Updated 27 October 2026

APR and APY answer different questions

APR describes an annualized rate without the same compounding assumption used by APY. APY incorporates an assumed compounding schedule. A displayed annual figure is not a promise that the current rate will continue for a year.

A simple fixed-rate illustration

At a hypothetical constant 5% APR, $1,000 produces $50 over one year before costs if no compounding occurs. Monthly compounding at that same nominal rate gives about 5.116% APY. Real crypto rates, asset prices, reinvestment rules and fees can change, so this arithmetic is not a return forecast.

Ask what the rate includes

Base lending interest, incentives and staking rewards are not interchangeable. Incentive token prices can change. Check whether a number is gross or net, whether rewards are actually claimed or compounded, and whether entry, exit, performance or network costs are excluded.

A short holding period magnifies fixed costs

Account creation and network fees can outweigh a small amount of yield. Compare deposit and withdrawal costs with the amount and time you expect to hold, without treating an annual rate as a guaranteed daily payment.

Unavailable rates are unknown

A missing provider rate is not zero yield and should not be filled with a remembered or invented number. Position values, wallet balances and reported rates are separate observations with different update times.

Compare currently available Earn products → · Review fees → · Read the data methodology →