APY (Annual Percentage Yield) shows the estimated rate of return you can earn on your assets over one year.
In Earn, APY helps you understand how much your deposited assets may earn if the current rate remains the same.
How does APY work?
Rewards accrue once a day, based on your balance and that day's APY:
Daily reward = Balance × (APY ÷ 365)
Let's say you deposit 1,000 USDC. Here's how your balance would move over one week if the APY shifted along the way:
Day | APY that day | Balance at start of day | Reward added | Balance at end of day |
1 | 5.0% | 1,000.000 | +0.137 | 1,000.137 |
2 | 5.0% | 1,000.137 | +0.137 | 1,000.274 |
3 | 5.0% | 1,000.274 | +0.137 | 1,000.411 |
4 | 4.0% | 1,000.411 | +0.110 | 1,000.521 |
5 | 4.0% | 1,000.521 | +0.110 | 1,000.631 |
6 | 4.2% | 1,000.631 | +0.115 | 1,000.746 |
7 | 4.2% | 1,000.746 | +0.115 | 1,000.861 |
Over the week, this deposit earned 0.861 USDC — even though the APY changed three times. Nothing about the deposit itself changed; only how quickly it grew, day by day.
APY takes compounding into account, meaning that rewards added to your balance can also contribute to future earnings.
Is APY fixed?
No. The APY displayed in Earn is variable and can change depending on market conditions and activity in the underlying lending markets. This means the rate you see when you deposit may be different from the rate available later.
Is the displayed APY guaranteed?
No. The displayed APY is an estimate based on the current rate and does not guarantee future returns. Your actual earnings may be higher or lower depending on how the APY changes while your assets are deposited.
Where can I see the current APY?
You can see the current APY for each supported asset directly in the Earn section of the app.
A few things worth remembering
APY is always shown as an estimate, not a guarantee. It reflects current conditions, not a locked-in number.
Rewards are added automatically. You don't need to "claim" anything. Check back anytime and your balance will already reflect what you've earned.
A lower APY doesn't shrink your balance. It just means future rewards accrue a bit more slowly until the rate moves again.