Annual Percentage Rate — the annualized interest rate charged on borrowed funds or earned on an investment, expressed without accounting for compounding. In DeFi, APR is commonly used to advertise the returns on staking, lending, or liquidity provision, showing what you would earn over a year at a simple flat rate. Unlike APY, APR does not factor in the benefit of reinvesting earned interest.
Example
“The lending protocol offered a 12% APR on stablecoin deposits, attracting yield-seeking investors from across the DeFi ecosystem.”