💛🖤 Booyah! BOO! — Understanding APR and APY

Annual rates help you compare potential staking rewards. The difference between APR and APY comes down to compounding—earning additional rewards on rewards you reinvest.

• APR (Annual Percentage Rate) shows the annual rate before accounting for compounding.
• APY (Annual Percentage Yield) includes the effect of compounding over one year.

What does 12% mean?

• 12% APR without reinvesting: A stake of 1,000 BOO earns 120 BOO over one year.
• 12% APR compounded monthly: The effective APY is approximately 12.68%.
• 12% APR compounded daily: The effective APY is approximately 12.75%.
• 12% APY: Compounding is already included in the stated 12% annual yield. With monthly compounding, this corresponds to approximately 11.39% APR.

Where are these terms used?

APR commonly appears in borrowing products and some staking programs. APY commonly appears in savings accounts and programs that account for reinvested rewards. For loans, APR may also include certain fees.

What this means for the Booyah! community

Before staking, check whether the displayed rate is APR or APY, whether rewards compound automatically or require manual reinvestment, and how protocol fees affect your earnings.

These examples are illustrative and assume a fixed rate for a full year with no fees. Actual rewards depend on the program’s terms, and earning more BOO does not guarantee a higher dollar value.