Golden Nugget of the Day - APR & APY You’ve seen APR and APY on various staking and LP dApps and may even think that they mean the same thing. They do not! There is a huge difference, let’s find out! Annual Percentage Rate (APR) It's the yearly interest that’s derived from the total charged to borrowers or paid to investors. Expressed as a percentage over initial capital, that does not include compounding interest. Annual Percentage Yield (APY): Refers to the real rate of earned return on the initial investment. And takes into consideration compounding interest. Let’s look at an example: On https://dex.loop.markets/farm2 you’ll see that yield for LUNA-LUNAX is 20.86% APR and 23.14% APY. Stader’s APR includes airdrops earned from your staked position, but does not include compounding rewards. And APY takes into consideration the auto-compounding rewards. This understanding of APR & APY helps you to make better decisions! What’s your favorite LUNA strategy that gives you great APR/APY?

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