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"APY is a measure of the effective annual return on investment, taking into account the effect of compound interest. In crypto, APY is used to measure the return on investment in various yield farming platforms, savings accounts, and lending platforms. The article explains how APY is calculated, its benefits, and its risks. APY can be attractive, offering higher returns than traditional savings accounts, but it also comes with risks such as volatility, platform issues, and regulatory changes."
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