APY (Annual Percentage Yield)
The total return on a deposit over one year, including compound interest.
In short: APY (Annual Percentage Yield) is the annualized return on an investment including compound interest — the standard way to compare USDC yield options.
APY accounts for compounding, which means you earn interest on your interest. If a platform offers 5% APY on USDC, and you deposit $10,000, you'd earn about $500 over a year (assuming the rate stays constant).
APY differs from APR (Annual Percentage Rate), which doesn't include compounding. A 5% APR with daily compounding works out to about 5.13% APY. In crypto, platforms usually advertise APY.
Important: DeFi yields are variable. A protocol might show 8% APY today and 3% next week. The number you see is typically based on recent performance, not a guaranteed rate.
Related Terms
Learn More
How to Earn 4–15% Yield on USDC in 2026
Earn around 4% on Coinbase (rate varies), 5-10% on Aave and Morpho, or 10-15%+ in DeFi liquidity pools. A tiered guide from easiest to most advanced, with current rates.
USDC vs a savings account
An honest comparison of stablecoin yield vs traditional banking. When each makes sense, and what the real risks are.
This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.