What Is APY, APR, and Impermanent Loss? Crypto Terms EXPLAINED

What are APR and APY? What does impermanent loss mean in crypto? The world of crypto is full of jargon and terminologies, in this video, we're going to break it down and explain it to you!
What is APY?
APY, short for annual percentage yield, measures the rate of return when users deposit their funds into different lending and yield farming protocols. APY includes the effects of compound interest, which can transform low daily or hourly returns into massive amounts over time. Since APY reflects the return on investment over a year, you should only expect to receive the advertised rates if your funds are deposited over this time horizon. Returns may also vary at any moment due to a multitude of factors such as token price and additional token incentives.
What is APR?
APR, or annual percentage rate, can be regarded as simple interest, where the effects of compounding are not included. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment.
What is impermanent loss?
Impermanent loss is incurred when liquidity providers receive different amounts of assets upon withdrawal, compared to when they first deposited them into a liquidity pool on an automated market maker (AMM) such as Uniswap or Sushiswap. This is due to changes in token price, which affects the composition of the liquidity pool, resulting in you having slightly less or more of a particular token.
Links Mentioned
Article on APR, APY, IL: www.coingecko.com/buzz/what-i...
Timestamps
00:00 Intro
00:34 What is APY?
02:30 What is APR?
03:10 APY vs APR
04:03 What is Impermanent Loss?
06:34 Final Thoughts
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#APR #APY #Learn

[@dilldev]

Good writing. Where do I get this “ehhth” coin?

[@gabrielpalacio6710]

LOL

[@CryptoVasu]

Awesome 😘

[@nnrq822]

Emissions schedule and issuance rate

[@khadeedabban3823]

👍👍👍

[@sinalbertckwong6406]

... limit of apy is the limit of natural log E, no matter the number of 'epics'.

[@istand4truth]

Another good video would be about MEV

[@larsfridlund6820]

I consider that the choice of APY in Stake have to do with minimum expense ,rather then take a role as dynamicbankinginvestor. You just laidback doing nothing at all with the gamling societeten. Can I be just ad layback myself? I bought in s similary crypto just a month ago and it disapeared ,I guess to the darknet of Crypton.

[@larsfridlund6820]

I consider a crypto with 2 billion in marketcap and 10m turnover is perfect.

[@zakariyamohamed6388]

Anywhere where interest is involved is bullshit

[@user-kw9cu]

this background gives me epilepsy