Yield APY, or Annual Percentage Yield, represents the annualized rate of return on an investment in a specific cryptocurrency through yield farming or staking. It reflects how much interest can be earned over a year, expressed as a percentage.When users lend their cryptocurrencies or lock them in a protocol, they earn rewards, often in the form of additional tokens. Yield APY takes into account the compounding effect, meaning that not only do users earn interest on their initial deposit, but also on the interest that accumulates over time.Different platforms and products offer varying APYs based on factors like the type of cryptocurrency, the protocol’s incentive structure, and market demand. It’s essential for users to consider these variations and the associated risks, such as liquidity, volatility, and platform security, when evaluating potential returns.In summary, Yield APY is a crucial metric for understanding potential earnings and making informed investment decisions.