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How the Interest Adds Up
An APY is a number that moves, and it is only the starting point of the calculation. This thread keeps "where the percentage comes from" separate from "what you actually keep".
Reading the APY as next year's return is the most common misunderstanding on any Earn page. These pieces start at the pricing mechanism and end at the records you keep.
- Why the Flexible APY Changes Every DayOne number yesterday, half that today, money untouched. The pricing mechanism behind a floating APY, and how to read the number.
- Bonus APY and Base APY: Where the Extra Comes FromThat attractive number usually covers only the first few hundred coins. How tiered APY blends out, and why your rate drops after you add funds.
- What the Platform Does With Your StablecoinsInterest doesn't appear from nowhere. Following the money down three paths: lending, market making, and the platform's own book.
- Is Stablecoin Interest Taxable? Three Things FirstRules differ hugely by country, but the records are yours to keep everywhere. The three variables that decide it, and the ledger to start today.
To turn a percentage into an amount, use the interest calculator; the mechanics behind the number live in Rate Tracker.