Cant wrap my head around how earning interest with crypto works with the underlying volatility. I would love some help with this example.
Token earns 5% APY. You invested $1000.
Token price at day 1 = $100. Token price at day 365 = $50 (it crashed).
Your investment after 1 year is $500 + (1000\*1.05) = 1550? Not possible. It has to follow the token price as it was falling right?