How DeFi Yield Worksheets Stay Honest
Educational DeFi yield worksheet: simple interest or daily compounding from user APY. Not a farm APR feed or guaranteed return.
Free Calculator Hub Editorial Team
8 min read
How DeFi Yield Worksheets Stay Honest
Educational DeFi yield worksheet: simple interest or daily compounding from user APY. Not a farm APR feed or guaranteed return. This article walks through the arithmetic without pretending the worksheet is a live quote.
Educational only
Educational worksheet only—not DeFi advice or a protocol yield quote. Impermanent loss, gas, and smart-contract risk are not priced unless you change the APY you enter.
The Question a Worksheet Can Answer
Simple applies APY × years. Daily compound uses (1 + APY/365)^days. Yield = ending − principal.
Inputs Worth Labeling
Practical habits
- Choose a display currency.
- Enter principal and APY percent.
- Enter the horizon in whole days.
- Pick simple or daily compound, then review ending balance and yield.
Formulas
- Simple ending: principal × (1 + APY × days/365)
- Daily compound ending: principal × (1 + APY/365)^days
Common Mistakes
Treating blog tips as live rates, mixing currencies, and comparing scenarios with different horizons. Keep labels explicit.