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APY (Annual Percentage Yield)

The yearly return you earn from staking or lending, including compound interest.

APY, or Annual Percentage Yield, shows how much you can earn in one year from staking, lending, or other yield products — including compound interest (interest on interest).

For example, if you stake USDC at 10% APY, it means that after one year you’d earn around 10% extra — assuming the rate stays the same and your rewards are reinvested.

Why it matters

  • APR vs APY: APR shows only simple interest. APY compounds it, giving a more accurate picture of real returns.
  • DeFi yields change often, so your actual profit can vary day by day.
  • Some high APYs are temporary “teaser” rates — always check how they’re calculated.

How to use it safely

  1. Compare APY between platforms, but always check the risks behind the yield.
  2. Avoid unknown platforms offering extremely high APY — they’re often unsustainable.
  3. Remember: Stablecoins earn lower but safer yields.

💡 Lanzo Tip

A steady 5–10% APY on stablecoins from a trusted exchange beats chasing 200% “degen yields” that might disappear overnight.