APR is the simple annual rate; APY is the same rate after compounding is applied.
Last verified 13 September 2026 · written by the DexLadder team
What it means
APR is the simple annual rate; APY is the same rate after compounding is applied.
Why it matters when you trade
Every DeFi dashboard chooses whichever number flatters it. Daily compounding turns a 50% APR into roughly 64.8% APY, and the difference grows fast at high rates. Neither figure is a forecast: both are extrapolations of a moment, and in crypto the moment is usually an incentive programme with a short life.
Worked example
50% APR compounded daily is (1 + 0.50/365)^365 − 1 ≈ 64.8% APY. The underlying yield never changed.
See it on live markets
DexLadder runs apr vs apy against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.