What is a Yield Aggregator?

A yield aggregator is a service that helps investors earn the highest possible return on their crypto investments. It does this by using automation to manage their investments in various pools, continually seeking out the best opportunities for earning yield. This is much more efficient than trying to manually optimize yields. The aggregator uses a unique strategy for each pool it manages, which typically involves reinvesting assets back into the pool to compound interest and increase the amount of yield earned. This process can be repeated several times a day, resulting in high annual percentage yields. There are other benefits for the user such saving on gas costs of claiming rewards, swapping it for more of the deposited tokens, adding liquidity & then re-depositing in the vault. The compounding fees are spread out among all investors in the pool, making it more cost-effective for the user APR & APY

APR and APY are two terms used to measure the performance of an investment. APR, or Annual Percentage Rate, represents the yearly interest earned on an investment, without taking into account any compounding effects. It is simply the percentage of the initial investment that is earned in a year's time. APY, or Annual Percentage Yield, takes into account compound interest and calculates the total return on an investment over a year, taking into account any interest earned on the interest. The more frequently the interest is compounded, the greater the difference between APR and APY will be. APY is a more accurate representation of an investment's performance, as it takes into account the effect of compounding. Investments that offer daily yields of 1% or more can result in large APYs in the thousands of percent. This is because the rewards earned are continually reinvested, causing the interest to compound on larger and larger amounts.