Annual Percentage Yield (APY) in coin staking is the annual percentage return that investors earn on their staked assets. APY takes into account compound interest, which is calculated periodically and added directly to the member's balance. Thus, as the balance continues to increase, the interest earned by the member also increases.
Unlike the Annual Percentage Rates (APR) interest which is fixed, APY interest will be calculated and added periodically, which can be monthly, weekly, or even daily. As a result, even though the initial funds are the same, through APY, the interest earned at the end of the period will be much greater than APR. Therefore, APY is said to be more suitable for investors as it provides higher returns.