ArbVexa / Research Tools
DeFi Yield Comparison: Beyond the Headline APY
Compare yield opportunities by examining how returns are generated, whether they can persist, and what risks you take.
APY vs APR
APR describes a simple annualized rate without compounding; APY includes a compounding assumption. A displayed APY is an estimate, not a fixed promise. In DeFi, supply and reward rates can change quickly as utilization, token incentives, and market prices move.
Pool comparison checklist
| Metric | What to check |
|---|---|
| APY | Base yield versus token incentives; whether rewards are liquid and sustainable |
| TVL | Liquidity depth and concentration; TVL alone does not prove safety |
| Underlying assets | Stablecoin depeg, token volatility, and correlated exposures |
| Protocol | Audits, admin controls, upgradeability, and incident history |
| Exit | Withdrawal rules, slippage, lockups, and bridging risk |
Illustrative APY calculator
Illustration only: deposit × [(1 + APY/100)^(days/365) − 1]. Excludes fees, token price moves, taxes and protocol losses. Assumes a constant effective annual yield.
Where to research pools
Use the ArbVexa DeFi yield explorer to inspect available pools and displayed APYs. Cross-check protocol documentation and the DefiLlama yields dashboard before committing funds.
Risks to understand
Impermanent loss can affect liquidity-provider positions; lending pools face bad debt and liquidation mechanisms; smart contracts and bridges can fail. High APY may simply reflect temporary token emissions.
Explore more on ArbVexa
Educational research only; not financial advice. Rates and spreads change, and examples do not guarantee returns.