APY or Annual Percentage Yield is the yield/interest after a year, which includes compounding interest.
Note that this is different from Annual Percentage Rate (APR), which does not take into account compounding effects.
What is Net APY?
Net APY is the weighted sum of your supply APY and borrow APY.
Your Net APY is specific to each user depending on their positions, whereas the supply and borrow APY is global.
Supply APY is the current interest APY of the asset when you supply; the interest accumulates in the units of the asset. Each token has a different set of parameters that determines its actual yield at different points (here). Additionally, you may get liquidity mining rewards like $BSTN, or other tokens that are shown as icons under the dashboard.
Invariantly, supply APY will always be POSITIVE.
the stNEAR realm offers both $BSTN and $META rewards
Borrow APY is the current interest of debt; the interest accumulates in the units of the asset. Each token has a different set of parametersthat determines its actual yield at different points (here). Additionally, you get liquidity mining rewards on$BSTN, or other tokens that are shown as icons under the dashboard.
There are two scenarios:
In the first scenario, the borrow APY is a POSITIVE rate, thus you will have to repay back your debt.
The second scenario is that the borrow APY is actually NEGATIVE, which means that the protocol essentially GIVES you the money instead. This is because Bastion’s liquidity mining rewards are so large that they dwarf borrowing costs.