Decentralized Finance (DeFi)

APR and APY

Also: APR, APY, Annual Percentage Yield

APR is the simple annual rate of return, while APY includes compounding, so APY looks higher for the same product. Variable DeFi rates change by the minute, so a quoted figure is a snapshot, not a promise.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.