Annual Percentage Yield (APY) is a financial metric that represents the total rate of return an investment might earn over a year when accounting for the effect of compounding. In cryptocurrency, it's commonly used to express the expected return rate on DeFi products such as staking, lending platforms, or liquidity pools, with compounding effects already calculated, allowing investors to intuitively compare the earning potential across different protocols.
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Hash Definition
Hash is a cryptographic function that converts data of arbitrary size into a fixed-length string, known as a hash value or digital fingerprint. Hash functions possess three key properties: one-way function (irreversibility), deterministic output (same input always produces identical output), and avalanche effect (small input changes cause significantly different outputs). Common hash algorithms in blockchain include SHA-256 used by Bitcoin and Keccak-256 used by Ethereum.
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