Yield Farming: APR vs. APY and the Cost of Compounding
Use worked calculations to separate simple rates, compounding assumptions, token incentives, and a strategy’s net outcome.
Reading collection / DeFi Field Notes
Trading costs.
A practical collection about the difference between headline numbers and complete economic outcomes. Quotes, fees, compounding, and maintenance can each change the result of a transaction or strategy.
Choose one reference unit and include the entire route: entry, any repeated actions, and exit. Check whether each displayed figure already includes a particular charge before adding or subtracting it. Keep hypothetical inputs separate from actual quotes. The worked examples here are useful for testing a method; they do not establish that the same prices, fees, or returns are available in a live market.
Use the linked guides below for worked explanations, source references, and connected reading. Keep the glossary open when a term needs a definition, and review the limitations of educational material before applying an example to a real position.
3 connected guides
DEX Swaps Explained: Slippage, Price Impact, and Fees
Learn to read a swap quote, calculate minimum received, compare total costs, and distinguish slippage from price impact.
Liquidity Pools and Impermanent Loss, With an Example
Work through a two-asset pool example and compare inventory changes, fee income, and the alternative of simply holding.