To learn more about Brighty Earning Vaults, please click here.
APY stands for Annual Percentage Yield and is a metric that represents the actual financial gain in a percentage per year that a customer receives when they move their funds in a Brighty Earning Vault.
The idea behind APY is to convey the true yield in annual terms, as it takes into account all compounding (compound interest) that may have occurred within that one year.
By using APY as a performance metric, Brighty allows customers to quickly and easily compare rates and to understand what they can expect to earn within a year.
Another measure (used by other cryptocurrency service providers) is APR (Annual Percentage Rate). APR reflects the simple interest rate in annual terms, leaving out the effects of compounding.