Annual percentage yield

So I actually do have a quick question for you, Daniel, right? So this isn't necessarily to BTC yield products, but just yield products in general.

Other than the advertised APY, how would a user evaluate the yield product itself?

Yeah, that's a long-winded way of question.

So when I was back at Credora, that was some of the systems that we were looking to build.

All right.

But if you have a top high yield savings account, at least during the time of this recording in October, that's roughly 4.2% to 4.35% APY, with sometimes when they have promotional offers, it's even higher.

So you can see the difference, 0.01%, 0.39%, upwards to 4.35%.

So be clear about what's going on here.

So your balance doesn't fluctuate or particularly up or down when the market drops or when the market goes up.

What you need to know about these accounts are a couple of definitions.

The first one being APY, which is the annual percentage yield.

That's the interest you earn in a year, which includes all the compounding.

Yeah.

And then it'll amount to 11% APY.

So for the year is the traditional borrower rate.

Because at the end of the day- uh there you can say like there's no free lunch so you gotta pay to borrow but the interesting thing in a traditional perks venue you have the the longs pay short the shorts pay long because you have to have an equal number of longs and shorts you can't just have like make-believe money in the system as much as this kind of is all make-believe but Like, it has to match.

Usually on one hour, you pay 10% or 10 times less than you pay on eight hours.

And you pay three times less on eight hours than you pay on 24.

This is just based on APY.

annual percent rate.

... that's, that's when you buy.

Um, there's nothing wrong with sticking your money in an APY account and waiting for something to crash.

Uh, and A- APY accounts are amazing at this very current time because the interest rates are so high, which is scary, but at least you're kind of fighting inflation.

A lot of banks have money maker accounts.

Uh, Wealthfront is a, a easy non-brick and mortar thing.

I think it's under 4%, like 3.7.

Mm-hmm.

So if you stick money in there, you're gonna w- earn some APY.

That's, that's valid.

Um, but you're not earning anything on your $18,000 right now, right? I mean, let's just say that your, your, uh, APY is, like, .05% right now.

That means you're gonna make about $9 over a year on that, on that money.

$9, okay? Nine.

Symphony is built on a simple idea.

Credit cards have spent decades rewarding people for spending, So why not reward people for saving? In this episode, expect to hear about how Symphony pays a fixed 5% APY in cash, points, or any mix, and what $10,000 in savings earns you in points every year, the 15 plus airline and hotel transfer partners in the pipeline, plus welcome bonuses that scale with your deposit, where the yield actually comes from, how your money is protected today, and the FDIC insured option on the way.

We'll also discuss why James sees saving for points as a sustainable alternative to the credit card rewards model, not as a replacement for your cards.

And if you have an upcoming points trip that you're looking to book, you can request a free personalized tutorial video for your next points trip.

What happens to that money? How many points do I earn? And what can I use those points for later?

Yeah, great question.

Yeah, the way it works on the app right now is so we currently offer a... a fixed 5% APY, and then the users get to choose, as you're onboarding, how you want to earn that interest.

So you can earn it all as cash, all as points, or you can do any mix in between.

So this is like a public dashboard.

This has live updates with the APY.

So actually right now we're sitting at We're sitting at a measly 90% on the 24-hour average.

But it's kind of cool.

So Merkle is what I would call their incentives distributor.

I first ran into them last year on Morpho.

Whenever you were in a DeFi vault, if you saw that there was a base APY and a rewards APY, the rewards API would be distributed via merkle um to which i was like i didn't really know what they were i kind of just thought they were like someone else you know helping with stuff but i have found that they have been really great when it comes to finding the best yields for defy so alex actually i want you to pull up defy llama um right now because i have found that merkle can also compete when it comes to like finding um yeah the best yields stuckler in the comments goes to Katana distributed through Merkel.

I didn't want to say that.