APY vs APR
The earnings of autofarm vaults can be estimated through the APR and APY value displayed on their respective vault page in the vault details.
The strategies designed by Autofarm perform optimally over a long period of time, when the effect of compounding can be really noticed, thus being APY the most accurate to display.
It is also important to notice this displayed APY is dynamic and can change (increase and decrease) through time mainly by two factors:
Price of the reward token farmed and compounded into the principal
Amount of people or value locked inside the pool (usually rewards are fix so more people or TVL implies that this reward is diluted)
The complete definition of APR and APY can be found next to a link with examples and useful information to understand how each one is calculated.
Refers to the simple interest accrued from a particular investment over a 1 year period.
Refers to the compounded interest accrued from a particular investment over a 1 year period.
APY reflects more accurately the expected yearly returns of that investment.
