What is APR?
APR (Annual Percentage Rate) represents the simple annual interest rate on an investment or loan, not including compound interest.
APR vs APY
- APR: Simple interest (no compounding)
- APY: Includes compounding effect
APY is always equal to or higher than APR for the same rate.
In DeFi
Protocols may display either metric. Always check which is being shown when comparing yields.