Understanding APY

AggreLend shows an effective APY that is meant to be a faithful summary of what your position earns over time, because the interface consolidates the ordinary supply-side rate from the currently selected venue together with any venue-specific reward streams that AggreLend converts into the same token you deposited and then re-supplies, which means the number you see is the number you accrue in-kind without separate claim steps or side calculations; the router prefers durable improvements over noisy spikes, so the displayed figure avoids short-lived prints that tend to collapse once capacity is hit, and a short confirmation window helps the system optimize only when a change is likely to hold rather than churn the position back and forth.

The effective APY is comparable across venues because AggreLend normalizes inputs: reward tokens are valued at conservative quotes, liquidity and utilization thresholds are checked to reduce immediate rate decay after a deposit, and venues that show unstable or thin conditions can be down-weighted in scoring so the position does not chase headline numbers that would not translate into realized results; taken together, these choices make APY in the UI a practical indicator of what the position is doing rather than a marketing peak.

If AggreLend introduces a performance fee in the future, that fee will be calculated against yield rather than principal and it will be included directly in the APY you see so that the value on screen remains the value you earn, keeping expectations predictable across deposits, optimizations, and withdrawals.