xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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This article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.
What is the difference between APR, APY, and ROI? How does that work in Yearn Finance?
Let’s explore.
Table of Content
APR vs. APY
ROI
APR vs. APY vs. ROI
In Conclusion
APR vs. APY
APR is a profit associated with costs. It is a lending term that works for lenders and against borrowers. Higher APR is bad because it is risky and highly costly.
APY is a profit factor in the compound interest returns. It is also a lending term that works for lenders to predict their returns associated with risks. The higher the yield, the riskier the loan will be.
Both factors are not set in stone, which means they fluctuate based on the market conditions. 20% of APR or APY does not guarantee such returns eventually.
You can check my previous articles about this topic here.
ROI
ROI or Return on Investment is a ratio between the net profit and to cost of investment. ROI reflects the efficiency of the investment. It is a projection factor that evaluates products using their past performance.
Depending on the length of your investment and strategies, the ROI may vary.
APR vs. APY vs. ROI
APR and APY can only estimate the potential returns. They do not give you a full picture of how you yield your investment. However, ROI gives useful information about the performance of your investment. To do so, you may calculate by yourself here. Luckily, Yearn Finance did it automatically on their platform.
In Conclusion
APR and APY can only provide estimated returns but ROI gives more concrete information about how your investment performed.
This article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.
What is the difference between APR, APY, and ROI? How does that work in Yearn Finance?
Let’s explore.
Table of Content
APR vs. APY
ROI
APR vs. APY vs. ROI
In Conclusion
APR vs. APY
APR is a profit associated with costs. It is a lending term that works for lenders and against borrowers. Higher APR is bad because it is risky and highly costly.
APY is a profit factor in the compound interest returns. It is also a lending term that works for lenders to predict their returns associated with risks. The higher the yield, the riskier the loan will be.
Both factors are not set in stone, which means they fluctuate based on the market conditions. 20% of APR or APY does not guarantee such returns eventually.
You can check my previous articles about this topic here.
ROI
ROI or Return on Investment is a ratio between the net profit and to cost of investment. ROI reflects the efficiency of the investment. It is a projection factor that evaluates products using their past performance.
Depending on the length of your investment and strategies, the ROI may vary.
APR vs. APY vs. ROI
APR and APY can only estimate the potential returns. They do not give you a full picture of how you yield your investment. However, ROI gives useful information about the performance of your investment. To do so, you may calculate by yourself here. Luckily, Yearn Finance did it automatically on their platform.
In Conclusion
APR and APY can only provide estimated returns but ROI gives more concrete information about how your investment performed.
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