What is APY in crypto and DeFi? | DYOR
APY in crypto or DeFi is short for annual percentage yield. APY is a somewhat standard metric for measuring the potential return on investment (ROI) of a crypto asset or DeFi project during one year.
Daniel McGlynn provides writing, content strategy, and brand positioning guidance for some of the internet's leading brands. Creating here to document what he learns along the way.
APY in crypto or DeFi is short for annual percentage yield. APY is a somewhat standard metric for measuring the potential return on investment (ROI) of a crypto asset or DeFi project during one year.
The result is that decentralized networks are tools that will weaken the grip of this generation’s internet giants by providing alternative products and services allowing network participants more control over their data and financial resources.
In a lot of ways, layer one tech is like getting a car from a standard manufacturer, and then layer two solutions are like adding aftermarket parts to boost performance and to further custom the underlying machine to meet specific needs.
Market cap is a basic financial metric used across all markets and describes the value of a particular cryptocurrency. Part of the reasons why market cap is useful is that it also provides a uniform ranking system.
The good news is that the ability to perform really solid crypto asset research is becoming easier — or at least more straightforward.
To dismiss massively valuable permissionless networks, like Ethereum, as trash because they are not backed by anything, is, well, a mistake.