What is APY?
Everything you need to know about APY and how to find the APY of staking assets inside your Exodus wallet.
In this article:
- What is APY?
- How does Exodus find the APY % for staking assets?
- What % APY am I receiving on my staked assets?
- How can I see the APY of the assets that I am staking?
What is APY?
APY stands for Annual Percentage Yield and is the projected rate of annual return after taking compounding interest into account.
In order to understand how APY is calculated, it is important to understand compound interest. In essence, compound interest is interest earned on previously earned interest. For example, let's say you deposit $5000 USD into a CD savings account at your bank with an APR (annual percentage rate - interest) of 1%. Let's also assume that you are receiving dividends for this account on a monthly basis. Here is how the monthly dividends will be paid into your account:
|January||$4.167||You are paid 1/12th of your annual 1% APR on the $5000 in your account|
|February||$4.170||You are paid 1/12th of your annual 1% APR on the $5004.16 in your account|
|March||$4.174||You are paid 1/12th of your annual 1% APY on the $5008.34 in your account|
As you can see, each month you are paid interest on the interest you accrued in the previous months. By the end of the year, you will have accrued more than the APR 1%, and your actual yield is closer to 1.005% due to the compounding interest. This 1.005% value is the APY in this example.
How does Exodus find the APY % for staking assets?
In Exodus, we display an estimated APY %. What this means is that behind the scenes, Exodus is looking at data from many different staking pools, and using this information to find an average that is displayed to you.
What % APY am I receiving on my staked assets?
The APY for crypto assets is variable and fluctuates based on supply and demand in each of the blockchain’s different protocols. This is determined differently and can change at any given moment.
If you are staking crypto, rewards are earned differently depending on which asset you are staking. For example, some staking assets work on a mined block per block cycle, some work by using epoch cycles, etc. Please see our staking guide here for more information on how the different staking assets in Exodus work.
These factors contribute to the variable nature of your staking APY % return. In Exodus, we try and give you the most accurate estimate of what your potential APY can be which you can see above.
How can I see the APY of the assets that I am staking?
Open your Exodus wallet, then a) make sure you are on the
Portfolio tab. Scroll down and b) click
APY REWARDS to filter your assets.
- Open your Exodus wallet, then make sure you are on the Wallet tab.
- Swipe down and look next to the name of each asset.
You will see the current APY for each asset you have enabled next to the name of the asset.
To see the APY in the Exodus Web3 Wallet, open the wallet and go to the asset you are staking.
Currently, you can only stake Solana in the Exodus Web3 Wallet.
Tap on the Rewards icon.
You can see the APY % in Average Reward Rate.