APR or APY for crypto staking?

APR and APY in one table

APR and APY are calculation methods. They do not identify the source of the payment. A network reward from crypto staking, interest from lending and a temporary bonus can all be displayed as APR or APY. Identify the product first and the calculation second.

What does APR mean?

APR converts a periodic payment to an annual rate without assuming that intermediate rewards earn their own return. It is a useful way to view the base rate.

If you hold 100 coins and the APR remains unchanged for a year, the calculation assumes rewards stay separate. Weekly reward payments do not change APR by themselves. Compounding begins only if those coins are added to the position generating the next reward.

In practice, a staking APR rarely remains unchanged for a full year. Total stake, network activity, issuance and protocol rules can change. Validators and platforms may also deduct commission. APR is an annualised snapshot, not a prediction of your realised annual return.

What does APY mean?

APY assumes intermediate rewards are reinvested. Those new coins can then earn rewards themselves. This is compounding.

A common formula is:

APY = (1 + APR / n)^n - 1

Here, n is the number of times per year the return is actually reinvested. The formula assumes APR stays constant and reinvestment has no loss or additional cost. Both assumptions can be incomplete for crypto staking.

A platform may credit rewards daily but add them to the staking position only weekly. You may also need to claim and restake manually. Network fees, transaction minimums and time between actions then matter. A calculated APY is achievable only if the assumed reinvestment actually occurs.

Payment is not the same as reinvestment

A daily or weekly payment tells you when a reward becomes visible or available. Compounding requires that reward to join the balance on which the next reward is calculated.

This can happen in three ways:

1. Automatically at network or product level. The earning position grows without an action.
2. Automatically through the provider. The platform restakes according to its own schedule.
3. Manually. You claim rewards and submit another staking transaction.

With manual compounding, doing it too often can reduce the result because every claim or restake may cost a network fee. For a small position, fees can exceed the benefit of more frequent compounding.

Why two APYs may still be incomparable

The largest number is not automatically the highest net return. Put rates on the same calculation basis, then compare fees, limits and product conditions.

APR and APY for liquid staking tokens

With liquid staking, rewards do not always appear as additional tokens. A rebasing token such as stETH may grow in quantity. With rETH, the quantity stays constant while the redemption value reflects accrued rewards.

Either may be described using APY, but the technical process differs. The market price of the token can also diverge from its protocol value. APY does not measure the potential discount when selling on a market.

Liquid restaking tokens can combine ordinary Ethereum staking rewards, additional protocol rewards and temporary incentives. Assess the components separately and read what restaking is.

How StakingRewards.eu handles rates

StakingRewards.eu collects rates daily from APIs and official provider websites. Checks flag unusual changes from the previous observation, and detail pages show when the rate was last checked.

When a source supplies APR, an offer may be converted to APY using a consistent compounding assumption so that APR and APY are not placed raw in the same ranking. The conversion is disclosed. It remains a mathematical comparison, not a guarantee that rewards are reinvested that often or the rate stays constant.

On a coin page such as Ethereum staking, product type, provider and conditions therefore remain visible next to the rate.

What determines your realised return?

• the rate during the period you participate;
• validator, pool and provider commission;
• network fees for staking, claiming and withdrawing;
• when rewards become available;
• whether rewards are actually reinvested;
• caps, tiers and minimum amounts;
• slashing or missed validator duties;
• the coin price when measured in euros.

An APY can be calculated correctly and still differ from the result you realise. APR and APY measure growth in the crypto position, not price risk.

Which one should you use?

Use APR to compare the base rate without compounding, particularly when rewards are not automatically reinvested. APY is useful when reinvestment is genuinely part of the product and its frequency is known.

For a practical comparison:

1. Check whether both rates are gross or net.
2. Identify the compounding frequency behind APY.
3. Confirm that payment also means reinvestment.
4. Deduct provider fees and expected network costs.
5. Check limits, tiers and the term.
6. Compare products with a similar source and risk.
7. Treat the result as an estimate, not a promise.

Finally, determine whether the product is staking or crypto lending. The letters after a rate do not make a risky product safer. For the next step, compare the practical ways to improve net staking rewards without adding another product layer by accident.

Sources and further reading

• Kraken: staking rates and APY
• Ethereum.org: staking rewards and validator balances