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DeFi

APR (Annual Percentage Rate)

The annualized rate of return on a crypto investment, without accounting for compounding. APR is the simpler figure: if a pool pays 10% APR, you earn 10% on your initial deposit over a year. Always check whether a protocol advertises APR or APY, since the difference can be significant.

Example

The lending protocol offers 5% APR on USDC deposits, paid out weekly.

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