APY – Annual Percentage Yield
DeFi Strategies
APY (Annual Percentage Yield) is the real rate of return earned on an investment or deposit over a year, taking into account the effect of compound interest. In DeFi and crypto platforms, APY is commonly used to show potential earnings from staking, lending, or yield farming, with higher APYs often reflecting more frequent compounding or greater risk.
Use Case: A user holds $KAG tokens in their Kinesis account, earning 15% APY through Holder’s Yield. Unlike simple interest, this rate factors in how often gold and silver dividends compound—meaning physical metal earnings generate additional earnings throughout the year, maximizing the total return.
Key Concepts:
- APR — Annual Percentage Rate without compounding effects.
- Yield Farming — Strategy to maximize APY across multiple protocols.
- Holder’s Yield — Kinesis reward system for simply holding metal-backed tokens.
- Compound Interest — The mathematical foundation behind APY calculations.
Summary: APY provides a standardized way to compare earning potential across different DeFi protocols and traditional financial products. Understanding APY helps investors make informed decisions about where to deploy capital for optimal returns in the evolving Web3 ecosystem.
Bullion Price Snapshot
September 20, 2025
Gold (XAU)
$3,685 /oz
+$46.00 (+1.26%)
Silver (XAG)
$43.31 /oz
+$1.34 (+3.19%)
Capital Rotation Context:
Smart money continues rotating into hard assets as fiscal pressures mount. Ray Dalio recently recommended 10% portfolio allocation to gold, citing unsustainable U.S. debt levels and currency devaluation risks. Gold has outperformed the dollar by 10% this year, establishing itself as the world’s second-largest reserve asset.
25-Year Bull Market: Post Dot-Com Performance
| Period | Gold Price | Silver Price | Gold Gain | Silver Gain |
|---|---|---|---|---|
| 2000 (Dot-Com Peak) | $279 | $4.95 | – | – |
| 2010 (Post-Crisis) | $1,225 | $20.19 | +339% | +308% |
| 2020 (Pandemic Era) | $1,770 | $26.29 | +535% | +431% |
| 2025 (Current) | $3,685 | $43.31 | +1,221% | +775% |
25-Year Summary:
Gold has gained 1,221% since the dot-com peak, while the NASDAQ took 15 years just to recover its 2000 highs. Silver’s 775% gain reflects its dual role as precious metal and industrial commodity. This represents the largest wealth transfer from financial assets to hard assets in modern history.