DeFi Yield Basics: Simple vs Daily Compound
Educational DeFi yield worksheet: simple interest or daily compounding from user APY. Not a farm APR feed or guaranteed return. This guide explains the worksheet in plain language. Educational only.
What This Worksheet Answers
Simple applies APY × years. Daily compound uses (1 + APY/365)^days. Yield = ending − principal.
Educational worksheet, not a live quote
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.
How to Run a Scenario
1
Step 1
Choose a display currency.
2
Step 2
Enter principal and APY percent.
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Step 3
Enter the horizon in whole days.
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Step 4
Pick simple or daily compound, then review ending balance and yield.
Formulas in Plain Language
Simple ending: principal × (1 + APY × days/365). Pro-rata APY without compounding. Daily compound ending: principal × (1 + APY/365)^days. Reinvests each day.