How are multiple yield sources combined?

EAY = (1 + r1/n1)^n1 × (1 + r2/n2)^n2 × ... - 1, where each r is a yield source and n is compounding frequency. Gas costs reduce net yield and must be subtracted from gross EAY.

How do gas costs affect small DeFi positions?

A $20 gas cost to claim rewards is significant on a $500 position but negligible on a $50,000 position. Optimal compounding frequency = minimize (compounding cost / additional yield from compounding), achieved when dY/dt = gas cost.

Effective Annual Yield Calculator for Crypto Strategies

Calculate the effective annual yield for composite crypto strategies: combine staking yield, liquidity pool fees, governance rewards, and DeFi lending returns into a single blended APY accounting for compounding, risk adjustments, and gas costs.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate the effective annual yield for composite crypto strategies: combine staking yield, liquidity pool fees, governance rewards, and DeFi lending returns into a single blended APY accounting for compounding, risk adjustments, and gas costs. Use the crypto eay result to inform your calculation.

Effective Annual Yield Calculator for Crypto Strategies

How to Use

Frequently Asked Questions

How are multiple yield sources combined?

How do gas costs affect small DeFi positions?