What is APY in crypto? How to find staking APY in your Exodus wallet.
In this article:
What is APY?
Annual percentage yield, or APY, is the projected rate of annual return after accounting for compounding interest.
Compound interest is interest earned on previously earned interest.
For example, let's say you deposit $5000 USD into a savings account at your bank with an APR (annual percentage rate) of 1%. Let's also assume you receive dividends every month. Here is how the monthly dividends will be paid into your account:
You are paid 1/12th of your annual 1% APR on the $5000 in your account
You are paid 1/12th of your annual 1% APR on the $5004.16 in your account
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 of 1%, and your actual yield will be closer to 1.005% due to the compounding interest.
In this example, 1.005% is the APY.
How does Exodus calculate crypto APY?
Exodus displays an estimated staking APY beside each stakeable asset. This APY is calculated by aggregating data from multiple staking pools and then displayed as an average.
If you're interested in learning about the assets it's possible to stake in Exodus, please visit: Does Exodus pay stakes? How to stake crypto.
What staking APY will I receive?
The APY displayed in your wallet is an estimate based on recent staking rewards and is for informational purposes.
APY for staking crypto fluctuates depending on several factors, including the actual performance of the validator. Note that the process for earning and claiming rewards depends on which asset you are staking.
In Exodus, we try to give you the most accurate estimate of what your potential APY might be based on recent data.
How can I see the APY for staking assets?
In Exodus Mobile, tap the Wallet icon.
The current APY is displayed next to the ticker of each staking asset you have enabled.
In Exodus Desktop, a) click on the Portfolio tab. b) Click APY Rewards to filter by staking assets.
The APY Rewards column displays the current APY for each staking asset you have enabled.