Understanding Metrics On CoinWind
We can’t imagine how mentally draining it is to deal with different terms in the DeFi space, especially if you do not have any background in Finance. To further elevate your experience at CoinWind, we have created this guide for you to refer to help you along the way. Understanding metrics is crucial for new and seasoned investors as it tells a story that is essential while evaluating your crypto portfolio. Without further ado, let's dive into some terms and metrics that you can see on CoinWind!
TVL is an abbreviation of Total Value Locked, where we refer to the aggregate amount of crypto assets locked on a DeFi platform. This metric is especially important while evaluating the health of a platform, where comparisons between platforms are usually made based on this value. An increase in TVL would signify that there is an increase in liquidity and popularity of a DeFi platform, thus increasing its value of it. CoinWind has showcased impressive results since its launch, where we maintain as one of the top 6 Defi projects with the highest TVL on the BSC chain at the time of this writing.
With that being said, you will also see the term “Personal TVL” which would stem from the same meaning, where we refer to the total amount of crypto assets you lock up on CoinWind.
You will notice that APY and APR are often used in the DeFi space where they could be used concurrently and interchangeably, giving rise to confusion. However, although they build on the same idea, they actually mean very different things.
APY refers to Annual percentage yield while APR refers to Annual percentage rate. Both metrics refer to the interest rates in crypto products across a 12-month period, however, there are major differences. The main difference would be that APY is calculated using compound interest while APR does not factor compounding in its calculations.
3. Staking Limits (%)
On the bottom of many products on CoinWind, you will notice that there is a percentage depicted by a bar, however, what does that really signify? To put it simply, it essentially signifies the staking pool limits that products have, where this metric would indicate the percentages that have been filled. In the case where the limit is reached, you will not be able to participate in the product any longer as there is insufficient liquidity to accept new stakes. Therefore, if you are on the fence about whether to enter a particular product, be sure to join us fast!
4. Multi-chain Lock-up Value/User Revenue
When we talk about multi-chain, we consider the different chains that a particular DeFi platform support. In the case of CoinWind, we currently support 3 chains (BSC, ETH, HECO). Therefore the total lock-up value and user revenue would simply reflect the total amount across all 3 chains.
We hope that this article has been informative and will improve your overall experience at CoinWind! Feel free to let us know if you have any other metrics you would like to understand next. Till next time CoinWinders!