APY% or Annual Percentage Yield essentially reflects the total amount of rewards from staking projected to be earned over the course of a year (365-day period), taking into account compounding interest.
It is important to keep in mind that the reflected APY% is an average percentage taking into account all of the DeFi and CeFi projects that are included in the staking pool.
APY% is a dynamic value and may fluctuate based on numerous market factors such as supply/demand, liquidity, volatility, etc, and may be higher or lower.
Generated income (yield), if any, is allocated to the corresponding balance once a day. Income on staked coins is calculated based on the lowest value of your wallet balance between the previous and current payout periods.
Example
A trader has an active stake of 1 ETH.
Let’s assume that generated income from staked funds is credited to the wallet balance once a day, at 12:00 pm, with an APY% equal to = 10%
From Monday 12:00 pm to Tuesday 12:00 pm the trader's wallet balance increased to 1.05 ETH, then decreased to 0.99 ETH, then further increased to 1.08 ETH (for example as a result of trading, or withdrawing/depositing funds).
In this case, on Tuesday at 12:00, the trader's yield will be calculated based on the lowest value of their balance from Monday 12;00 to Tuesday 12;00, which is equal to 0.99 ETH.
In other words, the trader's yield will be equal to:
Daily yield = (Lowest value of balance since the latest payout processing period * APY%) / 365 = (0.99*10%) / 365
Daily yield = (0.99*10%) / 365 ≈ 0.00027123287 BTC