Can you explain the concept of APY in the context of cryptocurrency lending platforms?

1 answers

• Dec 27, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency lending platform, explains APY as the Annual Percentage Yield that lenders can earn by lending their cryptocurrencies on the platform. It's a measure of the potential return on investment and takes into account factors such as the interest rate and compounding frequency. APY is an important concept for investors as it helps them compare different lending platforms and make informed decisions. However, it's essential to conduct thorough research and consider other factors like platform security and reputation before investing.
  563282