Staking APY is an effective annual yield that incorporates the assumed reinvestment of earned staking rewards. APY stands for Annual Percentage Yield.

If rewards are regularly added to the staked balance and then generate additional rewards themselves, the final number of tokens can be higher than under simple non-compounded accrual represented by APR. With frequent compounding, APY can therefore exceed the corresponding simple APR.

In practice, a published APY is a model rather than a guarantee. The user must actually reinvest rewards at the assumed frequency, and protocol conditions must remain sufficiently stable. Fees, changing reward rates, reinvestment limitations, and market-price changes can materially affect the realized result.