Compound interest the eighth wonder in cryptocurrencies as Albert Einstein said.
Let’s assume a 10% annual rate like Usdt or Usdc safe without risking just clicking on earn.
$100 annual $10 interest
$1000 annual $100 interest
$5000 annual $500 interest
$10000 annual $1000 interest
$100000 annual $10000 interest
thus successively
What is compound interest in Binance Earn?
Simple interest: you only earn on your initial deposit.
Compound interest: the rewards you generate (interest) are automatically reinvested, so with each new cycle you earn on the capital + accumulated interest.
In Binance, this applies mainly to:
1. Simple Earn (Flexible or Locked) → rewards in the same currency that you lock (for example: ETH, USDT, BNB).
2. Launchpool → when you farm new tokens and accumulate them.
3. Locked staking → similar to a bank fixed deposit, with automatic reinvestment at maturity.