Comparing token yields, explained.Same number, different meaning.
Two tokens can show the same percentage and pay very different amounts. The number may be compounded or not, include temporary rewards, be fixed or variable, or be earned in a different currency. Comparing yields means first making them comparable.
Reviewed October 19, 2026 · figures from our live data
The short answer
APR is a simple annual rate. APY includes compounding. For the same underlying rate, APY is always equal or higher.
A stated yield is what the issuer or protocol shows. What you are actually paid can differ because of fees, timing and changes in the rate.
Many on-chain yields combine a base rate with reward tokens. The base part comes from borrowers, staking or assets; rewards are often temporary.
Check whether the rate is fixed or variable, and in which currency it is earned. A yield in ETH or euros is not the same as a yield in dollars.
Six things to line up
Before comparing two numbers, put them on the same basis.
- 1
APY vs APR
APR ignores compounding. APY assumes earnings are reinvested at the same rate. Convert both to the same measure before you compare.
- 2
Stated vs paid
The stated yield is a projection or a recent average. The paid yield is what reached holders. For funds and notes, look at past distributions; for DeFi, look at the rate history.
- 3
Base vs reward
Base yield comes from the economic activity behind the token. Reward yield is paid in incentive tokens whose price and program can end. Compare base yields first.
- 4
Variable vs fixed
Most DeFi and stablecoin yields are variable and can change daily. Fixed yields, such as bond coupons or Pendle principal tokens, hold only to maturity.
- 5
Currency
A staking yield is earned in the staked coin. A euro token yields in euros. Exchange rate moves can outweigh the yield itself.
- 6
Gross vs net of fees
Some yields are shown before management or protocol fees, others after. Spreads and gas costs on entry and exit also reduce what you keep.
Where the yield comes from
A yield is payment for a risk. Knowing the source tells you which risk.
- 1
Treasury bills and money market assets
Tokenized treasuries and many yield stablecoins pass on short-term government rates, minus fees. Risk sits mainly with the issuer and structure.
- 2
Borrowers
Lending protocols and private credit pay what borrowers pay. Higher rates often mean riskier borrowers or riskier collateral.
- 3
Network rewards
Staking yields come from new issuance and fees of the network. Part of that is offset by dilution of the coin’s supply.
- 4
Trading strategies
Some tokens earn from funding rates or basis trades. These can turn negative when market conditions change.
- 5
Rent and real assets
Real estate tokens pay from rental income after costs. Vacancies and repairs reduce payouts.
- 6
A yield with no clear source
If you cannot tell where the return comes from, treat the number with caution.
Questions
What is the difference between APY and APR in crypto?+
APR is the simple annual rate without compounding. APY includes the effect of reinvesting earnings. The same rate shows a higher APY than APR.
Why is the yield I received lower than the one shown?+
Variable rates change, rewards may have ended, fees may not have been included, and the shown figure may have been an annualized short-term peak.
Is a higher yield always better?+
No. A higher yield usually means more risk, temporary rewards or a different currency. Compare the source and the base rate first.
How do I compare a staking yield with a stablecoin yield?+
They are earned in different assets. A staking yield is in the coin you staked, so its dollar value depends on that coin’s price.
- Highest-yield tokens right now →
- Yield-bearing stablecoins →
- Fixed-rate on-chain yields →
- DeFi lending explained →
- Fixed yield with Pendle →
This guide explains how these products work and is not investment advice or an offer of any security. Who may buy a product is set by its issuer; check the offering documents before investing.