Glossary
Six concepts that are often confused when comparing rates, then the other words you will meet on the site. One sentence each.
Common questions: the rate you get, tiers A–D, promotions →
Six concepts often confused
- Published rate today
The highest rate a venue advertises, usually only for the first part of a deposit.
- Today, for example: a flexible USDT product on an exchange (tier B 2/5) publishes 6.82%.
- Rate for your amount
The average over your whole amount, after the tiers and caps.
- Same product, 10,000 USD: 1.92%.
- 30-day average
The average of the rate published each day over the last 30 days: tells you whether today’s rate is usual or not.
- Flexible USDT, the middle published rate across venues: 4.50% on average over the last 18 days, 3.89% today.
- Projected interest
The interest you would get if the rate stayed the same all year and the coin price did not move. Both rarely hold.
- 10,000 USDT at today’s middle flexible rate (3.41%): about 341 USDT of interest after a year, if that rate held.
- Rate after fees
Some venues publish a staking rate before their own commission; where the fee is known, YieldCompanion compares the rate after it.
- Today, for example: a staking ETH product on an exchange (tier B 3/5) publishes 2.45% before fees; less a 6% commission, 2.30%.
- The coin’s own price swings
Interest is paid in the coin you deposit: if its price falls, the interest does not make up for it.
- In about 2 months out of 3, BTC moves within ±11%; the middle BTC rate today is 0.06% a year.
Other words
- APR / APY
APR is simple yearly interest; APY includes compounding. YieldCompanion converts every rate to APR to compare like with like.
- Stablecoin
A coin that tracks a currency (USDT, USDC the dollar; EURC the euro) thanks to reserve assets.
- Depeg
When a stablecoin trades well away from its peg; the tier criteria count a fall below 0.97 USD for more than 24 hours.
- Flexible / fixed term
Flexible can be withdrawn any time; fixed term locks funds until maturity.
- Staking
Using coins to secure a blockchain network; usually comes with a withdrawal wait.
- Custodial
The venue holds the wallet keys for you: you are trusting the venue.
- Smart contract
A program on a blockchain holding DeFi deposits; a bug in it can lose funds.
- TVL
Total value deposited in a DeFi protocol.
- Proof of reserves
An exchange publishes what it holds so users can check it covers deposits.