🅱️ What are APR and APY?
APR (Annual Percentage Rate) is the annual return excluding reinvestment.
APY (Annual Percentage Yield) — shows the profitability taking into account automatic reinvestment.
If the profit is regularly added to the position, it starts to work for you — the effect of compound interest is created. The APY is always higher than the APR if there is at least one reinvestment.
💡 Why is this important in Bidask?
Bidask Protocol's liquidity pools automatically reinvest earned commissions into your position — you don't need to do it manually. This works like a compound interest mechanism: profits are constantly returned to the pool and begin to generate additional income.
📈 Comparison of profitability at APR 50%:
— Manual reinvestment once a month: ~63% per annum
— Continuous auto-reinvestment in Bidask: ~65%
At APR 80%:
— Manual: ~117%
— Auto-reinvestment: ~123%
📌 The difference is noticeable even at moderate rates, and at high rates it gives a serious increase in income.
The Bidask Protocol makes participating in DeFi easier and more efficient, and your liquidity is running at full capacity — automatically.
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