What it means
Annual percentage yield: what a deposit would earn over a year at today's rate, with interest added back as it comes in.
In an onchain lending market the APY moves all the time, because it follows how much borrowers want to borrow. A rate you see today is a snapshot, not a promise.
How it works
In Defied every rate is labelled variable and names the market it comes from. Past rates don't tell you future ones.
Related terms
| Term | What it means |
|---|---|
| Variable rate | An interest rate that changes over time, often by the minute, with no fixed or guaranteed return. |
| Lending market | An onchain pool where people supply money that others borrow, with the interest paid by borrowers going to those who supplied it. |
| DeFi | Decentralised finance: lending, borrowing and exchanging that runs on public smart contracts instead of through a bank. |
This glossary explains terms in general. It isn't investment, tax or legal advice.