Tag: Glossary

The “Yield Curve” is a graph that shows the interest rates of bonds based on their maturities. In traditional finance, an inverted yield curve (where short-term rates are higher than long-term rates) is sometimes associated with recessions. It is a vital tool in the world of finance, as it provides a visual representation of interest rates in relation to bond maturities. This graphic representation is essential to...

APY, or Annual Percentage Yield, is a measure of the rate of return that users earn when they deposit their funds in different cryptocurrency lending protocols and yield farming platforms. APY includes the effects of compound interest, which can transform low daily or hourly yields into significant amounts over time. Since APY reflects the investment return over one year, advertised rates should only be expected if funds are deposited for...