What is APY?
Everything you need to know about APY and how to find the APY of staking assets inside your Exodus wallet.
In this Article:
What is APY?
APY stands for Annual Percentage Yield and is the projected rate of annual return after taking compounding interest into account.
In order to understand how APY is calculated, it is important to understand compound interest. In essence, compound interest is interest earned on previously earned interest. For example, let's say you deposit $5000 USD into a CD savings account at your bank with an APR (annual percentage rate - interest) of 1%. Let's also assume that you are receiving dividends for this account on a monthly basis. Here is how the monthly dividends will be paid into your account:
|January||$4.167||You are paid 1/12th of your annual 1% APR on the $5000 in your account|
|February||$4.170||You are paid 1/12th of your annual 1% APR on the $5004.16 in your account|
|March||$4.174||You are paid 1/12th of your annual 1% APY on the $5008.34 in your account|
As you can see, each month you are paid interest on the interest you accrued in the previous months. By the end of the year, you will have accrued more than the APR 1%, and your actual yield is closer to 1.005% due to the compounding interest. This 1.005% value is the APY in this example.
How can I see the APY of the assets that I am staking?
- Open your Exodus wallet, then make sure you are on the Portfolio tab.
- Scroll down and look in the column named APY.
Here you can see the current APY for each asset you have enabled.
- Open your Exodus wallet, then make sure you are on the Wallet tab.
- Swipe down and look next to the name of each asset.
You will see the current APY for each asset you have enabled next to the name of the asset.