What it means
Annual percentage rate: the yearly interest rate without counting interest earned on interest.
APY includes compounding, so for the same market it's a little higher than APR.
How it works
Both are variable onchain and come from the protocol, not from Defied.
Related terms
| Term | What it means |
|---|---|
| APY | Annual percentage yield: what a deposit would earn over a year at today's rate, with interest added back as it comes in. |
| Variable rate | An interest rate that changes over time, often by the minute, with no fixed or guaranteed return. |
| Supply rate | The variable interest earned for supplying tokens to a lending market. |
This glossary explains terms in general. It isn't investment, tax or legal advice.