In the context of decentralized finance (DeFi), it's essential to understand the distinction between Annual Percentage Rate (APR) and Annual Percentage Yield (APY). APR represents the simple interest earned over a year, while APY accounts for compound interest, reflecting the total returns on an investment when compounding is considered.

What's the difference between APR and APY in DeFi?

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What's the difference between APR and APY in DeFi?

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