APR (Annual Percentage Rate)

Definition

APR is a non-compounded annualized rate. DeFi UIs mix APR and APY — always check which one is shown and what drives the yield, because incentive APR and organic fee APR are not interchangeable.

APR is often the cleaner number for comparing raw reward streams before marketing multiplies them through compounding assumptions. Still ask what asset pays the APR and how long incentives last.

Organic fee APR tied to real usage is a different research object from emissions APR. Collapse them into one headline and you will misread sustainability. Day-one seller cohorts dominate early discovery more than roadmaps.

Lockups, boosts, and vote-escrow multipliers can change your effective APR. Document the position requirements, not only the base rate on a landing page. Cumulative depth near mid is the executable truth of a book.

Why researchers care

• APR looks lower than APY for the same stream if compounding is assumed.
• Incentive APR is not the same as organic fee APR.
• Boosted rates often require locks that change liquidity risk.
• UI labels are inconsistent across protocols — verify definitions.

How to use it in research

• A vault shows APY; docs show weekly rewards without auto-compound — restate as APR-like expectations.
• Fee APR of 4% plus emissions APR of 60% — thesis depends almost entirely on emissions.
• veToken boost doubles APR but extends exit delay — include illiquidity in the trade.

Common mistakes

• Assuming APR and APY are interchangeable marketing synonyms.
• Ignoring boost or lock conditions behind a headline rate.
• Comparing incentive APR across chains without dilution context.