@h969875i
What time‑weighted average yield metrics help filter volatility?
To filter out short-term noise and assess true performance, Time-Weighted Average APY (TWAPY) is a superior metric. Similar to TWAP for prices, TWAPY calculates the average yield over a specific window (e.g., 30 days), giving equal weight to each time period. This smooths out ephemeral spikes from airdrop farming or temporary emission boosts and provides a more realistic view of sustainable earnings. For portfolio management, a Moving Average APY (e.g., a 7-day moving average) can also help visualize the trend by filtering daily volatility. These metrics are essential for distinguishing signal from noise in a highly volatile yield environment.
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