How is APR calculated in DeFi?

Since APR is flat (or simple) interest. It is straightforward to calculate. Just take your principal investment and multiply it by the APR (as a decimal) to get what you will earn in a year . For example with an initial 1k investment earning 10% a year you would earn 100 dollars a year (1,000 * .

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What is APR and APY yield farming?

APR represents the annual rate charged for earning or borrowing money. APY takes into account compounding, but APR does not . The more frequently the interest compounds, the greater the difference between APR and APY. Investment companies generally advertise the APY, while lenders tout APR.

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What is yield farming platform?

Yield farming is the process of token holders maximizing rewards across various DeFi platforms . Yield farmers provide liquidity to various token pairs and earn rewards in cryptocurrencies. Top yield farming protocols include Aave, Curve Finance, Uniswap and many others.23 Şub 2022

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