DeFi Yield Calculators
Published on November 5, 2024
Want to know exactly how much you'll earn from a DeFi pool before committing your funds? DeFi protocols love to mix APRs, APYs, and daily rates, making it tricky to compare opportunities. Let's make it simple with these practical tools.
All calculators described below can be found on a dedicated page.
The All-in-One Yield Calculator
Yield Calculator
Let's start with the most useful tool: a flexible yield calculator that lets you see exactly what you'll earn based on your investment amount and time period. What makes this calculator special is that it handles four different types of rates you'll encounter in DeFi:
- APR (Annual Percentage Rate): The simple yearly rate
- APY (Annual Percentage Yield): Includes compound interest
- DPR simple (Daily Percentage Rate): For protocols that pay daily without compounding
- DPR compound: For those sweet daily compound gains
Just click the rate type button to cycle through these options. This is particularly useful because different protocols express their yields in different ways.
Here's a real-world example: Let's say you're looking at staking 10000 USDC at 12% APR for 90 days. Plugging these numbers into the calculator:
- With simple APR: $295.89
- With compound APY: $300.26
See how the different rate types affect your actual returns? While the differences might seem small here, they can add up significantly with larger amounts or longer timeframes.
APR ↔ DPR Converters
One of the common challenges in DeFi is comparing protocols that advertise different rate types - some, like Orca DEX, show daily rates while others, like Raydium DEX, display yearly ones. To make these comparisons easier, I created two companion calculators:
APR to DPR Converter
This one answers the question: "If a protocol offers X% APR, what's my actual daily rate?" But it goes a step further – it also factors in compounding frequency. Why does this matter? Because a 10% APR compounding daily gives you a different daily rate than the same APR compounding monthly.
Real example:
- 40% APR with no compounding = 0.1095% DPR
- 40% APR compounding monthly = 0.0934% DPR
- 40% APR compounding daily = 0.0922% DPR
The other one works in reverse: input a daily rate and see what it means annually:
DPR to APR Converter
Super useful when you find those DeFi protocols that only advertise their daily rates, and you want to get an APR estimate.
For instance, if you see a protocol offering 0.1% daily returns:
- Without compounding = 36.50% APR
- With monthly compounding = 43.27% APR
- With daily compounding = 44.03% APR
Conclusion
These calculators aren't just tools – they're your shield against misleading yield advertisements and handy helpers for making informed DeFi decisions. Whether you're yield farming, providing liquidity, or just staking some tokens, knowing your exact returns before committing funds is crucial.
Remember: in DeFi, as in traditional finance, the devil is in the details. A few percentage points here and there might not seem like much, but over time and with larger amounts, they can significantly impact your returns. Use these tools to make informed decisions and optimize your DeFi strategy.
For your convenience, all calculators described above can also be found here.