The yearly return on an investment earned through activities like staking, lending, or providing liquidity. It is expressed as a percentage and does not account for reward compounding, making it distinct from [APY (Annual Percentage Yield)]. APR provides a standardized way to measure the potential profitability of an investment over a one-year period.
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The yearly return on an investment earned through activities like staking, lending, or providing liquidity. It is expressed as a percentage and, as opposed to [APR (Annual Percentage Rate)], accounts for compounding, meaning it reflects the reinvestment of rewards to generate additional earnings over time. While APY provides a more comprehensive way to measure potential profitability over a one-year period, it is also more sensitive to factors like compounding frequency, token price fluctuations, and user reinvestment behavior, making it a less predictable metric compared to [APR].
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The process of transferring assets or data between two separate blockchain networks. Bridging enables interoperability between blockchains by allowing users to move tokens, NFTs, and other assets from one chain to another without losing functionality and value.
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