Bybit celebrated the second anniversary of the Bybit Card at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch.

The S&P 500 dropped 1.39%, entering correction territory amid Trump’s tariff threats and trade war concerns. Gold surged to a record $2,988, driven by trade uncertainty, recession fears, and Fed rate cut expectations. The Coindesk Indices, which tracks the broader crypto market, fell by 0.90%, with Bitcoin and Ether down by 3.36% and 2.63% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is S, up 7.9% after 0xGasless launched AgentKit on Sonic, enabling AI-powered, gasless on-chain automation.

Sonic Labs (S), established in 2018, is an EVM-compatible Layer 1 blockchain built from Fantom, delivering over 10,000 transactions per second. Its native token, S, replaces FTM at a 1:1 ratio. The network prioritizes high performance, interoperability, and developer incentives. 

, enabling AI agents to execute on-chain actions with NLP-powered automation and gasless transactions via smart wallets. Developers can use Sonic AgentKit to build DeFi copilots or automate blockchain tasks and contribute custom tools through its open-source GitHub.

Check out the latest prices, charts, and data of 

Bybit celebrated the second anniversary of the 

 at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch. The exchange announced a limited-edition Premium Metal Card coming in 2025, alongside enhanced user experience features such as an improved rewards program, stronger fraud protection, and wearables connectivity. Backed by Mastercard’s global network, the Bybit Card supports multiple cryptocurrencies and offers seamless payments at any Mastercard-accepting merchant. Bybit reaffirmed its commitment to expanding crypto financial solutions and bridging digital assets with everyday transactions.

Yesterday, BTC Spot ETFs saw $180.9M in net outflows, with GBTC losing $12.7M and non-GBTC funds dropping $168.2M.

 $EDGE tokens to active traders on Solana and EVM chains. Users who traded on Jupiter, Odos, Hyperliquid, and more can check eligibility and claim by depositing funds and trading $1K spot volume via TWAP. Airdrop claims open in 19 days, with a raffle for 500 users to win 100K $EDGE tokens.

Beginner

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Bybit marks Bybit Card’s second anniversary with new features and expansion plans

Indices are essentially statistical measures that track the performance of a group of assets. Learn more here.

From the Dow Jones Industrial Average (DJIA, or simply the Dow) to the Hang Seng Index (HSI), the world’s major stock market indices are vital benchmarks that reflect the performance of leading companies across regions. For beginning and veteran traders alike, such indices act as overarching market bellwethers that provide deeper insights into market trends and serve as tools for trading strategies, risk management and portfolio diversification.

Given their mass popularity, indices are widely traded in the forms of futures, options and 

 (ETFs), enabling traders to effortlessly hedge against volatility or speculate on market movements through their preferred instrument. In this article, we’ll explore the world’s biggest market benchmarks, their composition, significance in trading and their role in shaping global financial markets.

Indices are essentially statistical measures that track the performance of a group of assets. For example, by referring to the three major US indices, we can immediately tell how a particular segment of the market is performing, thanks to the snapshot provided by these indices. 

At their core, these indices provide a way to gauge market trends, manage risk and diversify portfolios by offering a broad view of different sectors or asset classes. They’re widely used in financial markets for investment strategies, and as benchmarks for evaluating performance.

While more popular indices typically track the prices of stocks, traders may also consider trading indices that take into account the performance of other asset types, such as commodities and fixed-income instruments (e.g., bonds).

How indices work — mechanics, composition and weightage

Beyond simple tracking, indices also serve as the basis for numerous financial products that enable traders to participate in broad market movements without needing to purchase individual assets. This unmatched level of accessibility makes indices crucial for both institutional and retail traders. To go one step further, the construction of an index — including the specific assets being included, and their weighting — can significantly impact the index’s behavior, and the extent to which it effectively represents its target market.

Overall, understanding these construction methodologies is vital for traders who want to accurately interpret index movements and make informed decisions. We’ll go into more detail on the inner workings of index trading in the subsequent sections of this article.

Index trading involves speculating on the price movements of a group of assets without directly owning them. This is typically achieved through financial instruments, such as contracts for difference (CFDs), futures or options. The following section provides a detailed explanation of the mechanics involved.

As previously mentioned, indices are composed of various assets, such as stocks, commodities or bonds, and their performance is tracked using different weighting methods. The most common methods include the following.

Now that you’re familiar with the technicalities involved with index composition, let’s dive deeper into the instruments involved with the trading of indices.

New to trading indices? No worries. Here’s a quick four-step process to help you get started.

In summary, index trading provides a way to participate in broad market movements through various financial instruments. It offers diversification and flexibility but requires careful 

, given the volatility associated with index trading.

Trading indices offers several compelling advantages that make them an attractive option for both novice and experienced traders. The following reasons are worth considering.

Indices can be categorized based on their coverage, weighting method and focus. 

Following are some of the main types of indices.

Index prices are influenced by a variety of factors that can be broadly categorized into economic indicators, company performance, market sentiment and external events. These factors interact dynamically, influencing the overall performance of indices and shaping market trends.

For traders looking to get started with index trading, 

 with deep liquidity and competitive spreads. For a limited time (from Mar 13 through Apr 12, 2025), we’re running a 

 in which traders can enjoy zero fees on selected index pairs, making it even more cost-effective to explore index trading.

Ultimately, trading indices can seem daunting, given their depth of assets and the mechanics involved. For example, the S&P 500 comprises hundreds of stocks, each with different amounts of weightage. If mega-cap stocks like Tesla were to face some form of volatility, there would definitely be an impact on the index. As such, beginning traders who are new to index trading must 

 prior to transacting with indices, given the risks involved with the use of leveraged instruments.

For those with a longer time horizon in mind, trading indices can certainly be useful, especially if you’re intending to 

 your entries over time when building up your position. Given the extent of diversification involved and the sheer amount of liquidity present, it certainly would make sense for any trader with a long-term bullish inclination to trade indices and hold their ETFs for the long haul.

With a reliable platform like Bybit Gold&FX, you’ll practically be spoiled for choice when it comes to navigating the diverse world of indices and other financial instruments. By empowering traders with access to real-time data, advanced charting tools and a user-friendly interface, Bybit Gold&FX helps traders make informed decisions when analyzing market trends and execute trades with precision.

Whether you're interested in tracking the performance of major stock market indices, exploring commodity indices or diversifying your portfolio with forex and gold, Bybit Gold&FX offers the necessary resources and support. The platform's focus on security and transparency provides traders with peace of mind, allowing them to concentrate on their investment strategies and capitalize on market opportunities. In essence, it transforms the complexities of index trading into an accessible and sleek experience.

Intermediate

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Indices: Trading the world’s biggest market benchmarks

Dogecoin Spot ETFs would offer a regulated vehicle for investors to capture Dogecoin's price movements without directly managing the cryptocurrency themselves.

 is defying expectations, transitioning from a crypto punchline to Wall Street legitimacy. In a landmark shift, the US Securities and Exchange Commission (SEC) has formally acknowledged Spot ETF applications for DOGE from heavyweight asset managers, including Grayscale and Bitwise, potentially catapulting the Shiba Inu–themed token into regulated markets. 

 (ETFs) would cement Dogecoin’s status as a serious investment vehicle, challenging perceptions of meme coins as fleeting novelties. 

This article delves into the mechanics of a Dogecoin Spot ETF, the current state of applications, their impact on the crypto market and the broader implications of such financial instruments.

A Dogecoin Spot ETF is a proposed exchange-traded fund that would directly hold Dogecoin as its underlying asset, allowing investors to gain regulated exposure to DOGE’s price movements without owning the cryptocurrency outright.

A Dogecoin Spot ETF would mirror the price movements of Dogecoin by holding the cryptocurrency directly, thereby enabling investors to capture its market performance without the complexities of purchasing, storing or managing the digital asset themselves.

Asset managers — in this case, Bitwise and Grayscale — would securely store actual Dogecoin tokens in 

 that often use cold storage solutions to reduce hacking risks. This responsibility is entrusted to custodians such as Coinbase Custody, which would safeguard Bitwise's Dogecoin holdings. These custodians specialize in cryptocurrency storage and employ robust security measures, such as multi-signature wallets and offline storage, to ensure the fund's value remains closely aligned with Dogecoin's current market price, while protecting the assets from potential threats.

Authorized Participants — usually large financial institutions — play a key role in maintaining this alignment by facilitating the creation and redemption of ETF shares. When demand surges, these institutions purchase Dogecoin from the open market and deposit it into the fund in exchange for newly issued shares. Conversely, they redeem shares by returning them to the fund for an equivalent amount of Dogecoin. This dynamic mechanism helps ensure that the ETF’s share price consistently reflects the underlying asset’s value.

Once issued, Dogecoin Spot ETF Shares would be traded on traditional stock exchanges, providing investors with an established and secure platform to gain exposure to Dogecoin. The ETF’s net asset value (NAV) would be determined by a comprehensive pricing mechanism that continuously reflects the current market price of Dogecoin. This process relies on the 

, which aggregates data from multiple reputable cryptocurrency exchanges. 

Using this standardized reference, the ETF ensures that fluctuations in Dogecoin's price — driven by market supply, demand and investor sentiment — are accurately captured. Consequently, the NAV is updated in real time, so it would provide investors with a transparent and precise representation of the fund’s true market value.

With this structured approach, a prospective Dogecoin Spot ETF promises a streamlined, regulated avenue for investors to participate in the dynamic cryptocurrency market, seamlessly integrating digital asset exposure with traditional financial systems.

In January 2025, REX Shares (in collaboration with Osprey Funds) filed with the SEC, seeking approval for a Dogecoin Spot ETF. The following month, Grayscale Investments advanced its crypto offerings by submitting SEC Form 19b-4 to launch its own Dogecoin Spot ETF, signaling an intent to diversify beyond traditional assets like Bitcoin and Ethereum. Shortly thereafter, Bitwise Asset Management, Inc. filed both S-1 and 19b-4 registration forms for a similar ETF, with its proposed fund set to hold Dogecoin as the primary asset and determine its net asset value using the CF Dogecoin-Dollar Settlement Price benchmark.

The SEC has officially acknowledged these filings, initiating a comprehensive review process. The Commission is known for its cautious approach in approving cryptocurrency-based ETFs, due to concerns over market volatility, liquidity and investor protection. However, this acknowledgment suggests a willingness to assess the potential of integrating Dogecoin into regulated financial products. The approval process is expected to be methodical, potentially taking up to 240 days from the initial acknowledgment. Bloomberg analysts 

Despite these promising regulatory developments, market reaction has been mixed. While the filing of Dogecoin Spot ETF applications has generated significant interest among investors, Dogecoin’s price experienced a decline after an initial increase following the announcements, indicating that investor sentiment could be influenced by broader market dynamics beyond ETF-related news.

Current impact of Dogecoin Spot ETF applications on the crypto market

Following the ETF application announcements, Dogecoin's price experienced significant fluctuations. Initially, there was a surge in optimism, with 

 within 24 hours (as of Feb 14, 2025) as investors anticipated potential institutional adoption. However, this uptick was short-lived, and within a week, Dogecoin's price declined by over 7%. This retracement underscores the inherent volatility of the cryptocurrency market — and suggests that while ETF filings can boost confidence, they also introduce speculative dynamics that may lead to rapid price corrections.

This mix of enthusiasm and caution among investors reflects the duality of a market in transition, balancing prospects of institutional legitimacy and the realities of speculative volatility. On the one hand, potential approval of a Dogecoin Spot ETF is viewed as a gateway for mainstream and institutional investors to engage with DOGE, potentially leading to increased liquidity and market stability. On the other, the subsequent price decline following the ETF announcements indicates that the market remains sensitive to speculative trading and profit-taking behaviors. Investors are advised to approach such developments with a balanced perspective, considering both the opportunities and risks inherent in cryptocurrency markets.

What will it mean if a Dogecoin Spot ETF application is approved?

Should the SEC approve a Dogecoin Spot ETF, it would mark a significant milestone in legitimizing meme-based cryptocurrencies within a traditional financial structure. Such an ETF would allow investors to gain direct exposure to Dogecoin's price movements through traditional investment platforms, which in turn could lead to increased institutional participation as it provides a regulated and familiar investment vehicle for entities that may previously have been hesitant to invest directly in crypto.

The introduction of a Dogecoin ETF is anticipated to enhance the cryptocurrency's liquidity and market stability. By facilitating easier access for a broader investor base, the ETF could lead to higher trading volumes and reduced price volatility over time. The legitimacy conferred by regulatory approval could potentially bolster investor confidence and attract more capital inflows into Dogecoin.

Dogecoin Spot ETF approval could also set a precedent for other meme-based cryptocurrencies, such as 

 (SHIB), to pursue similar financial instruments. The Shiba Inu community has been actively advocating for a SHIB-based ETF, highlighting factors like strong diversification prospects and growing investor demand. Notably, after the Spot Ethereum ETF approvals in July 2024, Shiba Inu's pseudonymous lead developer, Shytoshi Kusama, hinted that SHIB could be next in line. 

As with a Dogecoin Spot ETF, the introduction of a Shiba Inu Spot ETF would provide investors with regulated exposure to SHIB, potentially increasing its adoption and market presence. However, the approval process for such ETFs is complex and subject to stringent regulatory scrutiny. While the SEC has approved ETFs for major cryptocurrencies Bitcoin and Ethereum, the path for altcoins like Dogecoin and Shiba Inu remains uncertain. Factors such as liquidity, market maturity and regulatory perspectives will play crucial roles in any approval process.

Looking to capture the market and trade DOGE tokens? Bybit offers the 

The approval of a Dogecoin Spot ETF would mark a watershed moment for meme cryptocurrencies, offering regulated access to Dogecoin’s price movements and potentially stabilizing its volatile market through institutional investments. While initial price surges and subsequent corrections highlight speculative risks, long-term benefits would likely include enhanced liquidity, legitimacy and broader investor adoption. This precedent could pave the way for altcoins like Shiba Inu to pursue similar ETFs, though regulatory hurdles and market maturity remain critical barriers. 

Ultimately, a Dogecoin Spot ETF would bridge meme-driven crypto culture with traditional finance, providing the much-beloved dog-themed Dogecoin with a previously unattainable level of credibility.

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Dogecoin Spot ETF: A giant leap for Dogecoin's legitimacy

Solana dev shop Anza aims to double blockspace and enhance efficiency in 2025 through incremental upgrades like improving the Agave client, scaling Turbine, and adopting a faster hashing algorithm. 

The S&P 500 gained 0.49%, driven by a tech rebound after a weaker inflation report. Gold rose 0.63% to $2,933, driven by safe-haven demand, Fed rate cut bets, and central bank buying, with $2,950 as the next target. The Coindesk Indices, which tracks the broader crypto market, rose by 1.87%, with Bitcoin and Ether down by 0.22% and 2.38% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is TIA, up 12.1% following Citrea’s launch of bitcoin appchains with Celestia integration.

Celestia (TIA), launched in May 2017, is a modular blockchain network that provides a secure data availability and consensus layer, enabling blockchains to publish transactions and operate efficiently. 

, leveraging Celestia for scalable data availability while maintaining Bitcoin’s liquidity and security. The deployment of BlobstreamX enhances secure DA proofs for Bitcoin applications, reducing fees and increasing transactions. Developers can now build and test custom OP Stack rollups using Citrea’s detailed guide.

Solana dev shop Anza aims to double blockspace and enhance efficiency in 2025 through incremental upgrades like improving the Agave client, scaling Turbine, and adopting a faster hashing algorithm. The block limit will rise from 48M to 50M compute units, while further optimizations are expected as Solana’s read layer undergoes an overhaul.

Yesterday, BTC Spot ETFs saw $60.4M in net inflows, with GBTC losing $11.8M while non-GBTC funds gained $72.2M.

, backed by Polygon, Spartan Group, and HashKey, has launched its Loyalty Points Program, where users can earn Moon Beams by completing tasks and securing a spot in the confirmed airdrop. To participate, users must join the dashboard, claim badges, and complete regular tasks, with no cost to join.

Anza’s 2025 roadmap boosts Solana efficiency and blockspace

Crypto

Trading

Investing

APY is the annualized rate of return from an investment, factoring in compound interest that accrues or grows with the balance by the standard. However, the calculation may differ from exchanges. Learn more.

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In the past few years, the bank savings interest rate has been on the decline, given the state of inflation. One prominent example is the U.S. Bank Standard Savings account, with an annualized percentage yield (APY) of 

 as of 16 April 2023. With such low bank interest rates, people have been attracted by the cryptocurrency market’s passive yields through avenues such as staking, yield farming and cryptocurrency lending.

APY is a common term used in traditional finance, as well as in the cryptocurrency market, to indicate the rate of return gained over the course of a year. The other commonly used metric displayed for users is the annual percentage rate (APR). The main difference between the two lies in whether the returns earned by users are simple or compounded.

This article will explain what APY is, how it differs from simple interest rate and APR, the factors that affect APY and some of the cryptocurrency avenues that involve APY. Understanding APY can aid you in comparing the returns you’ll receive from various investment opportunities.

What Is Annualized Percentage Yield (APY)?

APY refers to an annualized actual interest rate of return earned from an investment, factoring in compound interest that accrues or grows with the balance. Compound interest includes interest earned from the initial deposit, plus the interest earned on that interest. To put it another way, APY is a way to track how interest accumulates over time.

Although commonly associated with traditional savings, APY is a crucial metric for cryptocurrency savings programs and works in a similar way. Cryptocurrency investors can earn APY by staking their cryptos, putting them in savings accounts or providing liquidity to liquidity pools via yield farming. 

You can quickly get started earning APY on your cryptocurrency through crypto 

Typically, investors earn interest in the same crypto that they’ve deposited. However, there are instances where one can be paid in either the same or a different currency.

However, there are other ways of calculating APY, depending upon the exchange. For example, Bybit offers flexible savings plans that allow users to stake and unstake tokens anytime to collect guaranteed yields without the element of compounding interest. The APY is calculated in a simple interest format, where the daily yield represents the interest rate that will be deposited into your wallet based on the number of tokens you’ve staked. 

Daily yield = Number of total tokens staked × (APY for the staked token ÷ 365)

For example, if you’ve staked 10,000 USDT for guaranteed APY at 9%, you can collect 2.5 USDT the next day. The calculation is represented as 10,000 × (0.09 ÷ 365) = 2.4657 USDT.

However, if you’ve chosen to unstake your tokens after collecting daily yields, no yield will be credited to your account. Essentially, any changes to the initial staked asset will affect your daily yield. 

Simple Interest Rate vs. Annualized Percentage Yield

While APY refers to the projected rate of annual return gained on a deposit or stake after compounding interest, a simple interest rate only considers the interest earned on the original stake. 

Compounding is a powerful investment tool since it enables you to earn additional income over time. Compound interest refers to the amount received on both the principal amount and the interest that accumulates over time. With each additional period, the interest paid on the overall balance also increases, since the account balance is increasing.

Rates of return can be difficult to compare across different investments if they have different compounding periods. One may compound daily, while another compounds quarterly or biannually. It’s critical to know how often that compounding occurs, since the more often a deposit compounds, the faster the investment grows

To make it easier to understand, consider staking $1,000 at an interest rate of 12% per annum in January 2021. After one year in January 2022, using a simple interest rate calculation, you’ll receive a total of $1,000 × (1 + 12%) = $1,120.

The same $1,000 staked at 12% per annum, but with biannual compounding of interest in the first six months, will give you $1,000 × (1 + 6%) = $1,060, or the total after six months.

After a year, you’ll earn 1,060 × (1+ 6%) = $1,123.60 

That extra $3.60 comes from the power of compound interest. Therefore, your annualized percentage yield is the return you’ll receive over the year: $1,123.6 ÷ $1,000 − 1, or 12.36%.

The 7-day APY is an annualized yield using 7-day returns. It’s calculated by taking the net difference in price from 7 days ago to today, and generating an annual percentage. 

The formula to calculate 7-day APY is as follows:

This calculated amount helps investors understand the weekly yield or return. Find out the annual interest yield using the 

: The crypto APY calculator suggested here may not be accurate, as the calculation is highly dependent upon the terms and conditions of the platform's staking policies and/or the yields.

APY represents your rate of return (the amount of profit or earnings you can make).

, your ultimate earnings will differ. The holding period will determine how much you actually earn. 

What Is the Annual Percentage Rate (APR)? 

APR, or annual percentage rate, is the interest you earn from your invested assets in a year, expressed as a percentage. This figure may include fees that borrowers pay. It’s a useful tool for comparing different investment products, since it provides a consistent basis for presenting annual interest rate data. 

APY and APR sound very similar. However, unlike APY, APR doesn’t factor in compounding

For example, if you stake 10,000 coins at an APR of 10%, you’ll earn 1,000 coins as interest after one year. But with APY, the situation changes significantly. 

To calculate APR, you can use the following formula: 

APR = [(Fees + Interest) ÷ Principal] ÷ n × 365 × 100 

In traditional finance, APR is often used to discuss terms for borrowers — for instance, the credit card interest rate that borrowers pay. This percentage rate of interest can also refer to the percentage paid to investors. In general, the APY for a loan is higher than its corresponding APR because of the effects of compounding.

Cryptocurrency assets and activities are usually compounding investments. Instead of simply collecting a flat yield once a year, as in the case of APR, cryptocurrency investments tend to involve reinvestment and make use of compounded interest to help investors boost their rewards. Hence, APR, which is good for flat figures, isn’t too useful when it comes to compounding assets, such as cryptocurrencies. This is also the key reason why most cryptos show APY instead of APR — to provide a better gauge of investment returns.

Another difference is that APR is usually inclusive of all charges, whereas APY only calculates interest rates.

One important note is that because APY includes compounding in its calculation, it will always produce a higher interest rate.

Inflation refers to the loss in value of a currency over time. Within the cryptocurrency market, inflation refers to the process of adding new tokens to the blockchain network, usually at a predetermined rate. The appeal of cryptocurrencies such as Bitcoin is that they’re designed to have predictable, low inflation rates. 

The rate of inflation for a particular network affects its staking returns. If your coin experiences inflation rates higher than your APY, then your earnings are eroding just as quickly as you’re adding them.

As with any market economy, supply and demand influence pricing. An owner of a cryptocurrency can effectively lend it to generate interest income. Since interest is earned based on the demand to borrow that crypto, market dynamics can determine the rates. 

The interest rate charged for borrowing money tends to be lower when there’s plenty of supply and higher when it’s scarce. Similarly, cryptocurrency APY is variable, changing according to the liquidity and level of demand for each coin.

It’s typical of newly launched projects to offer sky-high lending APYs, in order to encourage new users to come onboard and provide liquidity to their token — which will also aid in increasing the demand for the project’s token. However, as time passes, this APY will eventually fall, offsetting the initial, artificially propped-up numbers.

Calculation of APY is also influenced by the amount of compounding applied, which can vary. Remember that APY increases as the number of compounding periods increases. 

Let’s look at an example. If you deposit $100,000 compounded monthly at 5% per annum, your APY will be 5.116%. The calculation used is 100,000 × (1 + 0.05 ÷ 12)

. Your balance will be $105,116 by the end of the year. 

On the other hand, if compounding is done on a daily basis, then your APY will be 5.126%, with a final balance of $105,127 by the end of the year. The calculation used is 100,000 × (1 + 0.05 ÷ 365)

The more opportunities your interest has to grow, the more it can earn. 

Cryptocurrency Investments That Involve APY

 type, then you don’t have to just store your crypto in a wallet and wait for it to appreciate. There are ways to invest your cryptocurrency and draw on the magic of compound interest or APY in order to grow and multiply your assets.

If your target time horizon in crypto is for the long term, you can get a lot more mileage out of your holdings with cryptocurrency lending and borrowing.

Cryptocurrency lending works pretty much the same way as traditional lending, except you’re lending cryptocurrency rather than paper money. When you lend out your cryptocurrency on a decentralized platform to borrowers, you earn interest or crypto dividends. Depending on the platform, the interest rates can range from 3% to 17%. This is evidently a larger range compared to the TradFi markets, with interest rates ranging between 

While cryptocurrency lending provides investors with a passive income stream, borrowers also benefit from enjoying additional liquidity. 

Let’s say you have 10 bitcoins, and you need some cash urgently — but you don’t want to sell any of your Bitcoin because you believe its value will “go parabolic” in the future. You fear that if you offload your Bitcoin, you could end up with less of it when you repurchase it at a later date, due to an increase in Bitcoin’s price. 

Cryptocurrency lending platforms will allow you to use your 10 bitcoins as collateral to receive a loan. However, you may be required to 

, a fancy way of saying you’ll have to lock in far more cryptocurrency than the amount you want to take as a loan. 

When you repay your loan in full, your collateral will be returned. The amount repaid will depend upon the APY of the loan, which determines the interest rate paid. Hence, borrowers will always prefer a lower borrowing APY, as it means a lower cost for them.

Lending platforms connect cryptocurrency lenders to borrowers. Here’s how 

A borrower requests a loan from a lending platform. Once the platform approves the request, the borrower must lock some of their cryptocurrency as collateral for the lending. The lender funds the loan and receives interest payments periodically at the agreed-upon APY. This continues until the end of the loan tenor.

Cryptocurrency Annualized Percentage Yield (APY) vs Annual Percentage Rate (APR)

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