APR
Annual percentage rate: in DeFi yield displays, an annualized rate usually quoted without compounding periodic returns.
In more detail
APR puts a rate on an annual scale without assuming that each payout is reinvested. A DeFi display can change as rates or incentive rewards change, so the number may describe current conditions rather than a fixed year-long result. Regulated borrowing disclosures can use more specific definitions of APR.
How you might use it
My example spreadsheet starts with 1,000 units at a constant simple 5% APR: 50 units over a year before costs.
- Written out
- Annual percentage rate
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