Lending Mechanics
APR (Annual Percentage Rate)
The annual cost of borrowing without accounting for compounding. APR is typically lower than APY for the same rate because it doesn't include the compound effect.
Why APR (Annual Percentage Rate) Matters
Understanding apr (annual percentage rate) is essential for anyone participating in crypto lending or DeFi markets. This concept directly impacts how you evaluate platforms, manage risk, and optimize returns.
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