APR

APR stands for Annual Percentage Rate. It is a measure that, on an annual basis, expresses the return or cost associated with an activity, regardless of how often amounts accrue. Unlike APY, APR does not account for compounding.

In the context of crypto-assets, APR is often used to describe the parameters of programmes such as staking. In these cases, it represents the theoretical annual rate of the rewards set by the protocol.

Rewards are not guaranteed interest: they are variable, depend on the protocol’s rules, the amount of crypto-assets locked by participants, and network conditions, and may decrease or fall to zero. APR helps a user compare different programmes in a standardised way, but it is not a forecast of returns nor a promise of income. It should always be read together with the full conditions of the protocol and the related risks.

Disclaimer: This entry is for information purposes only and does not constitute investment advice, a recommendation or a solicitation to invest.

Correlated words

Liquid Staking

Liquid staking is a form of staking that issues a token representing the locked assets, which can be used while the assets remain locked.

TVL

Le TVL (Total Value Locked) est la valeur totale des crypto-actifs verrouillés dans un protocole de finance décentralisée à un instant donné.

Wrapped Token

A Wrapped Token represents the value of one crypto on a different blockchain standard, facilitating cross-chain transactions and usage.

Bonding

Bonding is the mechanism by which a protocol acquires liquidity or assets by offering its own tokens in exchange, often at a discount.

Staking Derivative

A staking derivative is a token representing staked crypto-assets and their rewards, which can be used while staking is active.

Yield Farming

Yield farming is the use of crypto-assets in DeFi protocols to obtain variable rewards, for example by providing liquidity.

Swap

Swap is the exchange of one crypto token for another via a decentralised platform, enabling seamless asset conversion.

Staking

Staking is the locking of crypto-assets to help secure a Proof-of-Stake blockchain, in exchange for variable, protocol-dependent rewards.

Smart Contract

A smart contract is a program that runs automatically on a blockchain when the predefined conditions written in its code are met.

Crypto Lending

Crypto lending is the lending of crypto-assets to third parties in exchange for variable rewards that depend on the protocol.

ERC-20

ERC-20 is the technical standard that defines the common rules for fungible tokens created on the Ethereum blockchain (ERC-20 tokens).

DEX

A DEX is a decentralised exchange that allows crypto-assets to be swapped through smart contracts, without a central intermediary.

DeFi

DeFi (decentralised finance) is the set of financial services that operate through smart contracts, without central intermediaries.

DApp

A DApp is a decentralised application that runs on a blockchain via smart contracts, without relying on a central server.

DAO

A DAO is a decentralised autonomous organisation, managed through smart contracts and rules voted on by its participants.

CeFi

CeFi (Centralised Finance) refers to crypto-asset services provided by centralised operators acting as intermediaries between users.

Arbitrage

Arbitrage is a strategy that exploits price differences in the same asset across markets to capture a margin.

APY

APY (Annual Percentage Yield) is the annual percentage rate that takes into account the compounding of the amounts accrued.

AMM

AMMs (Automated Market Makers) are smart contracts that facilitate the exchange of crypto-assets on decentralised exchanges (DEX).

Aggregator

An aggregator brings together services and data from multiple crypto-asset platforms, including DeFi protocols, into a single interface.

APR