Glossary
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
APR is the simple annual rate, with no compounding. APY folds compounding back in, so it is always the higher number for the same underlying yield.
The gap grows with frequency. A 20% APR compounded daily lands near 22% APY. When a platform advertises a headline number, check which one it is — and whether the yield is paid in a token that might fall faster than you earn it.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.
Block Explorer
A site for viewing every transaction, wallet and contract on a blockchain.