Staking 5,000 Tokens at 20% APY for 1 Year
Staking 5,000 tokens at a high 20% APY compounded daily for one year produces about 1,107 tokens in rewards.
How to use this tool
- Enter the number of tokens you plan to stake.
- Enter the current APY offered by the staking protocol.
- Select the compounding frequency (daily compounding maximises returns).
- Enter the staking duration in years.
- Read your projected rewards and final token balance.
Calculate the impressive rewards from staking 5,000 tokens at a 20% APY DeFi protocol.
Frequently asked questions
- What is the difference between APR and APY in staking?
- APR (Annual Percentage Rate) is the simple rate without compounding. APY (Annual Percentage Yield) reflects the effect of compounding — reinvesting rewards back into the stake. Daily compounding at 12% APR gives a slightly higher effective APY.
- Are staking rewards guaranteed?
- No. Staking APYs fluctuate based on network participation and protocol parameters. Smart contract bugs and token price changes also affect your real returns. Always research the protocol risks.