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Summary
APY and APR - You've likely seen these two similar terms when checking out decentralized finance (DeFi) products.
APY, or annual percentage rate, includes quarterly, monthly, weekly, or daily compound interest, while APR, or annual percentage rate, does not. This simple difference makes a significant difference to the calculation of returns over a certain period of time. Therefore, you must understand how these two metrics are calculated and their impact on the returns you can earn from your digital funds.
