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
Yield & returns.
Trace rewards to an underlying activity and compare them with the changing value of the position. This collection includes lending, liquidity provision, staking, and compounding, each with its own source of returns.
Avoid ranking strategies until their asset units, measurement periods, fee treatment, and benchmarks are comparable. Identify whether a percentage is historical, annualized, or based on an incentive assumption. The articles use independent worked examples to show why a higher token balance can coexist with a lower reference-currency value. No article publishes a current yield offer or promises a future result.
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.
4 connected guides
DeFi Lending: Collateral, Health Factor, and Liquidation
Model how debt and collateral affect a lending position, then plan for interest, liquidity constraints, and repayment.
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.
Staking vs. Liquid Staking: Rewards, Control, and Exits
Compare validator operation, pooled participation, receipt tokens, redemption, and the extra layers added by DeFi use.