Ex Maiar DEX, X Exchange allows users to trade cryptocurrencies without going with KYC and other requirements like in Centralized exchanges. One of the most incredible features of Maiar Exchange is the staking, where you can earn interest on your cryptos. When staking cryptocurrency on the Maiar, you can see the APR and APY of the specific tokens. But what exactly are they? This article will discuss X Exchange APR vs. APY simply so you can understand it easily.
But before we go further on this, let’s first understand what is staking.
What is Staking?
Staking is the process of locking cryptocurrencies in a specific wallet to support the operations of a project. By doing so, you can earn rewards in the form of the particular token that you are staking.
In simple terms, staking is like earning interest in your cryptocurrencies. The more you stake, the more rewards you can earn.
Now that we know what staking is, let’s move on and understand Maiar’s exchange APR vs. APY.
X Exchange APR vs. APY
APR or Annual Percentage Rate is the interest rate you earn annually on your staked cryptocurrencies. For example, If you stake a 1,000 BHAT token at Maiar DEX, you will get a 25% APR, meaning you will earn extra 250 tokens every year. On the other hand, if the APR of a token is 10%, it means you will make 10% interest on your staked tokens every year.
APY or Annual Percentage Yield is the total return of your investment in a year. It includes the interest rate as well as the compound interest. Compound interest is the interest you earn on your assets, including the interest already earned.
How to be Eligible for APR and APY in X Exchange?
There isn’t much you need to do to be eligible to earn interest on your cryptos in Maiar exchange. The only thing you need to do is stake your crypto. For example, if you want to get 25%/28% APR/APY on Utrust, you need to stake it on Maiar DEX metastaking. Once you stake the specific token, you will see how much you earn every few seconds. To see how much you earned, you can go to metastaking and click on your staked token.
If you want to retake the earned tokens for compound interest(APY), you can click on reinvest, and you are good to go. You can click on harvest if you don’t want to reinvest. But both harvesting and reinvesting require you to wait at least 120 minutes after staking and a minimum of $15 in rewards.
X Exchange’s APR vs. APY are two completely different things. In short, APR is the interest you earn on your staked tokens every year, and APY is the total return of your investment in a year. I hope this article helped you to understand the difference between Maiar DEX’s APR and APY. Thank you for reading!