APY is the annual percentage yield from your investment. In the DeFi pool, you may often see both indicators (APR and APY), but their numbers are hardly the same. The higher the APY against APR, the higher the frequency of compounding. For example, if you put $1,000 into a daily auto-compounding USDT pool with 10% APR, you would end up with 10.52% APY, resulting in an additional $105.20. ($1,105.20).