# APR

> Annual percentage rate. The yearly return on a deposit, before compounding.

Canonical URL: https://fudfomo.co/glossary/apr
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

APR is a simple yearly rate. If a protocol advertises 10 percent APR, you would earn 10 percent of your deposit over a year, ignoring any compounding.

APR makes it easier to compare two products head to head. APY is more useful when you actually want to know what your balance will look like after compounding.

## Related terms

- [APY](https://fudfomo.co/glossary/apy): Annual percentage yield. The yearly return on a deposit, including the effect of compounding.
- [Yield Farming](https://fudfomo.co/glossary/yield-farming): Moving crypto between DeFi apps to earn the highest rewards. Higher yields usually mean higher risk.
- [DeFi](https://fudfomo.co/glossary/defi): Decentralised finance. Apps that offer lending, trading, and saving on a blockchain instead of through a bank.
- [Lending Protocol](https://fudfomo.co/glossary/lending-protocol): A DeFi app that lets users deposit crypto to earn interest and others borrow against collateral.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co