Calculate your compound returns, daily earnings, and projected yield from any DeFi protocol.
APR (Annual Percentage Rate) is the simple interest rate without compounding. If a protocol offers 12% APR and you don't reinvest, you earn exactly 12% on your principal per year.
APY (Annual Percentage Yield) accounts for compounding. Daily compounding at 12% APR gives roughly 12.75% APY — your actual earnings are higher when you reinvest rewards frequently.
Higher APY almost always means higher risk. Tokens can be worthless, protocols can be exploited, and impermanent loss can negate yields. Always do your own research.