Can't you distinguish APR/APY clearly? An example that even Grandma Lisa can understand, a true minimalist beginner Many people are also asking about the 18% annualization of shark fins, let's explain it together Let's sneak in! ⬇️ First, let's take a look at the question: @ MorphLayer Black Card offers up to 30% APY @ okxchinese shark fin APR 3%~18% May I ask which one is true? Let's not say the answer yet, keep reading. We can distinguish APR and APY in one sentence, which is: APR does not include compound interest, APY includes compound interest one ️⃣ APR： (Annual Percentage Rate) The nominal interest rate reflects the base rate, calculates interest only, and does not include additional income from other rewards or compound interest. two ️⃣ APY： (Annual Percentage Yield) Real Interest Rate, taking into account the compounding effect (the return on interest reinvestment). If there are additional rewards, they are usually included in APY as well. APR and APY are both concepts in traditional finance, and their introduction into Defi basically maintains their original meaning, but with slight differences: Compound interest calculation: Traditionally, it is usually calculated on an annual, monthly, or daily basis. Defi is more flexible and can be calculated by block or even seconds Source of income: Traditionally, it is only related to compound interest, while Defi may include various additional rewards, with the wool coming from the dog For example: @Mercy_okx deposited 100 yuan into China Merchants Bank, with an interest rate of 5%. Therefore: If it is a fixed interest rate, it can be obtained upon maturity 100 x (1+5%)=105 yuan If the interest is compounded monthly, it can be obtained upon maturity 100 × [1+(0.05 ÷ 12)] ^ 12=105.12 yuan At this moment, Bank of China said to @ EudemoniaCC, 'If you come to deposit with me, I will also receive 5%, but I have a box of eggs worth 10 yuan for you and a small fan worth 5 yuan for you. What should be calculated based on?'? Strict APR calculation, still at 105 yuan Generalized APY calculation, the final return is 105.12+10+5=120.12 yuan That's how many APY in Defi came about. They combined compound interest and other incentives together and represented it as APY. Actually, it's not quite right, but it's been used a lot. It's a convention and can be understood as: comprehensive rate of return, or generalized APY. Now back to the previous question. @MorphLayer black cards offer up to 30% APY. probably. Besides the basic interest, it has been clarified that 10% of the @ MorphLayer token will be distributed to PayFi users. How can black cards also receive a 2% share? In addition, they have just airdropped BAI, and it is said that there will be several airdrops soon. @Okxchinese shark fin APR 3%~18% probably. OKX's Shark Fin is a capital guaranteed structured wealth management product, and its high APR is not simply a deposit interest rate, but is achieved through financial engineering and derivatives market operations. The basic gameplay is for users to choose a Bullish or Bearish shark fin product during the subscription period and invest a certain amount of USDT. The product usually has a term of 3 or 7 days, and after expiration: If within the price range, a higher APR can be obtained If it is outside the price range, an APR of 2% to 6% can be obtained On the shark fin page, it is also specifically stated that the product's revenue does not include staking and other benefits, so it can be understood as "real revenue". If you still don't understand, can you simply understand it as a large short-term deposit certificate in bank wealth management? Of course, like large short-term wealth management products, shark fins are something to compete for! // Nowadays, projects are being used haphazardly. Anyway, if you see someone using APR, they are basically honest and only represent basic income. To use APY, it is necessary to carefully verify the composition of the profits, including the milk, eggs, and fans sent, and then compound them by block. These should be called: Comprehensive rate of return, or APY in a broad sense. Finally, who is Grandma Lisa?