Many dont know the difference between APR and APY, especially when it comes to defi. A simple 🧵 👇👇
APR (annual percentage return) is the annual rate of return *not* taking into account effects of the compound of interest
APY(annual percentage yield) is the annual rate of return, taking into account the effects of the compound of interest.
APY>APR
It's better to calculate your returns on investment using APY, while APR is more common in lending
Eg, a yield farming program offers APR of 100%/yr. You deposit $1000. A year later you'll receive $2000, where $1000 is the initial capital and $1000 is APR
A thread 🧵 on @mars_protocol 🔴 and why it could be the biggest interstellar value unlocker for the wider crypto landscape and a 💎 for Terra
$mars $luna
Mars is a broader and more comprehensive companion to @anchor_protocol. While Anchor is limited to pos assets(yield generating) to ensure the sole focus of a fixed ~20% yield on deposits, Mars is more extensive in its offerings.
If you don't know how anchor works, I suggest this excellent thread by @FloodCapital