OP 15 January, 2024 - 08:01 PM
Farming returns are measured on an annualized basis and can be expressed as simple or compound interest:
?Annual Percentage Rate (APR) is the annualized interest an investor earns from the investment body alone. Simple Interest Method;
?Annual Percentage Yield (APY) is the annual percentage an investor earns from the body of the investment as well as reinvested interest. Compound Interest Method.
Keep in mind the risk/return ratio in these types of transactions. By providing liquidity for safe assets, one can rarely expect high returns. And vice versa.
?Annual Percentage Rate (APR) is the annualized interest an investor earns from the investment body alone. Simple Interest Method;
?Annual Percentage Yield (APY) is the annual percentage an investor earns from the body of the investment as well as reinvested interest. Compound Interest Method.
Keep in mind the risk/return ratio in these types of transactions. By providing liquidity for safe assets, one can rarely expect high returns. And vice versa.