What is APY?
This article will cover everything you need to know about APY of your staking assets in Atomic Wallet.
- What is APY?
- How does Atomic Wallet calculate the APY for staking assets?
- What is the APY of my staked coins?
- Do crypto assets have a compound interest?
- How can I see the APY of the assets that I am staking?
What is APY?
APY, or Annual Percentage Yield is the estimated percentage of annual return on your staking investment. In other words, the amount of money, or interest, you earn on a certain staked asset over one year.
How does Atomic Wallet calculate the APY for staking assets?
APY of a staked asset in Atomic Wallet is an average approximation. We are taking data from all available staking pools and calculate the average APY based on the APY of each pool. For example, if a coin has two available staking pools, one offering a 20% APY and the other - 10% APY, the average APY for this coin will be 15%.
What is the APY of my staked coins?
APY depends on many factors of a particular blockchain: inflation rate of the network, number of found blocks, number of validators, amount of staked coins. Remember, that APY is an approximate amount and it may change several times during the staking period of your asset.
Rewards are distributed differently depending on the asset you staked. For example, with some assets, staking works on a mined block per block cycle, while others use epoch cycles and so on.
All of these aspects lead to fluctuation of your staking APY. Because of that, the average APY that is displayed in the wallet may differ from the APY you are actually getting with your staking.
Do crypto assets have a compound interest?
The compound interest is a term most often used in relation to bank deposits. It is the process of adding interest to the initial sum of the deposit. In cryptocurrency terms that would mean the process of adding staking rewards to your initial staked amount. Some crypto assets do indeed have this feature. For example SOL, ALGO or ADA. But this is more of an exception, rather than a rule. With most crypto assets, you are only receiving rewards on the amount you staked initially. For more information about distribution of rewards for different assets consult this guide.
How can I see the APY of the assets that I am staking?
- Open the wallet and click Staking on the left sidebar.
The APYs will be displayed in the last column to the right
- Select the Staking tab in the bottom panel
The APYs will be displayed to the right of the asset name