You deposited your funds on Binance, see some percentages, reduction of APR, PNL, but not sure what all this means? Let's figure it out so you can read the numbers like an experienced analyst, not a fortune teller reading coffee grounds ☕
🔹 What is #APR ?
APR (Annual Percentage Rate) — is the annual interest rate that shows how much profit you will earn in percentage from the invested amount over a year.
If APR = 12%, it means that in a year from $100 you will get $12 profit (without taking into account compound interest).
APR is not always a guarantee. When it comes to staking or farming, it can change depending on demand, supply, and rewards.
🔹 Other types of rewards in Binance
#APY (Annual Percentage Yield)
This is APR + the effect of compound interest. If the reward is accrued and reinvested again, your profit grows faster.
Example: 12% APR → ~12.68% APY (with monthly capitalization).
Rewards in tokens
Staking: you lock the token, receiving rewards in the same token (for example, SOL for staking SOL).
Liquidity Farming: you provide liquidity to the pool, receiving trading fees and bonus tokens.
Savings (Flexible / Locked): flexible or fixed deposits, profits accrued daily/weekly.
BNB Vault
You deposit $BNB , and it works in several programs simultaneously (#Launchpool , #Staking , #Savings ) and brings you a 'package' of rewards.
Launchpool Rewards
You receive new tokens just by holding your coins in the pool for a certain period.
🔹 What is PNL?
PNL (Profit and Loss) — your actual profit or loss.
Realized PNL — already fixed result (you sold or closed the position).
Unrealized PNL — potential result if you close the position right now.
For example:
Bought a token for $10, it rose to $12 → Unrealized PNL = +$2.
Sold for $12 → Realized PNL = +$2, Unrealized becomes 0.
🔹 How rewards are calculated on Binance
Daily or weekly — depends on the product.
Proportionally to the time of participation — if you joined not from the beginning of the period, you will receive proportionally less.
Automatically to the balance — without your additional actions, but with the ability to reinvest.
☝🏻Tip from #Psy_Trade:
APR is your approximate 'sun' on the horizon. PNL is your 'weather' right now.
Earn not only from interest but also from the price change of the asset, but remember: APR is good only when the coin itself does not drop faster than the interest accrues.
