APY

APY stands for Annual Percentage Yield. It is a measure that expresses, on an annual basis, the return of an activity while taking compounding into account, that is, the periodic reinvestment of the amounts accrued. This is the main difference from APR, which does not consider compounding.

In the context of crypto-assets, APY is often used to describe the parameters of programmes such as staking. It indicates a theoretical annual value: rewards are not guaranteed interest but variable amounts that depend on the protocol’s rules, overall participation, and network conditions.

Disclaimer: APY enables comparison of different programmes in a standardised way, but it is not a forecast of returns or a guarantee of income. Before committing resources to an investment, it is important to review the full terms and related risks.

Correlated words

Liquid Staking

Liquid staking is a form of staking that issues a token representing the locked assets, which can be used while the assets remain locked.

TVL

Le TVL (Total Value Locked) est la valeur totale des crypto-actifs verrouillés dans un protocole de finance décentralisée à un instant donné.

Wrapped Token

A Wrapped Token represents the value of one crypto on a different blockchain standard, facilitating cross-chain transactions and usage.

Bonding

Bonding is the mechanism by which a protocol acquires liquidity or assets by offering its own tokens in exchange, often at a discount.

Staking Derivative

A staking derivative is a token representing staked crypto-assets and their rewards, which can be used while staking is active.

Yield Farming

Yield farming is the use of crypto-assets in DeFi protocols to obtain variable rewards, for example by providing liquidity.

Swap

Swap is the exchange of one crypto token for another via a decentralised platform, enabling seamless asset conversion.

Staking

Staking is the locking of crypto-assets to help secure a Proof-of-Stake blockchain, in exchange for variable, protocol-dependent rewards.

Smart Contract

A smart contract is a program that runs automatically on a blockchain when the predefined conditions written in its code are met.

Crypto Lending

Crypto lending is the lending of crypto-assets to third parties in exchange for variable rewards that depend on the protocol.

ERC-20

ERC-20 is the technical standard that defines the common rules for fungible tokens created on the Ethereum blockchain (ERC-20 tokens).

DEX

A DEX is a decentralised exchange that allows crypto-assets to be swapped through smart contracts, without a central intermediary.

DeFi

DeFi (decentralised finance) is the set of financial services that operate through smart contracts, without central intermediaries.

DApp

A DApp is a decentralised application that runs on a blockchain via smart contracts, without relying on a central server.

DAO

A DAO is a decentralised autonomous organisation, managed through smart contracts and rules voted on by its participants.

CeFi

CeFi (Centralised Finance) refers to crypto-asset services provided by centralised operators acting as intermediaries between users.

Arbitrage

Arbitrage is a strategy that exploits price differences in the same asset across markets to capture a margin.

APR

APR (Annual Percentage Rate) represents the annual percentage rate of an asset, calculated without taking compounding into account.

AMM

AMMs (Automated Market Makers) are smart contracts that facilitate the exchange of crypto-assets on decentralised exchanges (DEX).

Aggregator

An aggregator brings together services and data from multiple crypto-asset platforms, including DeFi protocols, into a single interface.

APY