APR/APY 101

I'm baffled at how a person could be looking at two liquidity pools that have 20% APR and 20% APY, and he'll assume that they are the same 😂

OGs we all know that they're not at all.
Newbies, I mean no harm😂

The simple one is APR, or Annual Percentage Rate:

meaning if you put in $100, you could walk out with $20 after a year and that's it.

https://blog.ston.fi/yield-farming-in-defi-how-to-get-started-on-ton/

Then APY, Annual Percentage Yield, takes considers compounding.

your rewards will continue to add up into your principal then the rewards will also add up rewards of their own

Meaning, a supposed 20% APY will yield you a little more than the 20% at the year end.

BTW, StonFi has its own inbuilt APR/APY calculator just in case you get confused or you want to calculate yours.

Easily accessible via https://tools.ston.fi/apr-calculator

The difference itself isnt much initially but it multiplies with all other factors jsyk

So in months time, the gap between you who understood this and one who did not will begin to show itself in your $$ 🤑

and when you compare farming pools on STON.fi, checking whether the number shown is APR or APY takes only a few seconds, and it will definitely change which pool is better for you, trust me.

It's also best you look at the existing liquidity pools and tell what is being offered at the moment.