Annual Percentage Rate(APR)
The annualized return on an investment without accounting for compounding.
In-Depth Explanation
APR is the simple interest rate—if you earn 1% per month, APR is 12%. It doesn't include compounding effects. Lending protocols often show APR for borrow rates and APY for supply rates. Always check which is being displayed when comparing opportunities.
Related Terms
More in Yield
View all →Mercenary Capital
Capital that moves between protocols purely to chase the highest incentives, with no loyalty or long-term commitment.
Annual Percentage Yield
APYThe annualized return on an investment accounting for compound interest.
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.
Impermanent Loss
ILThe loss in value compared to simply holding assets, caused by providing liquidity to an AMM as prices diverge.