Category: Decentralized Finance
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Understanding APR, APY and their differences
Annual Percentage Rate (APR) and Annual Percentage Yield (APY) are both ways to express the annual interest rate of a financial product, such as a loan or a savings account. APR is a measure of the annualized cost of borrowing money, including interest and fees. It is expressed as a percentage. For example, if you…
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What is Yield Farming?
Yield farming, also known as liquidity mining, is a strategy used by cryptocurrency investors to earn high returns on their investments by providing liquidity to decentralized finance (DeFi) protocols. These protocols often offer incentives in the form of tokens to encourage users to provide liquidity to their platforms, which allows them to facilitate trades and…