Simple yield
Yield that doesn't reinvest interest — equivalent to [[apr]] without compounding.
Most lending protocols compound automatically (interest accrues to the index in real time). Manually-compounded products (e.g., reward-token harvests on staking pools) require user action; reported APR there often understates realised return after compounding.
Related terms
- APR (annual percentage rate)A simple annualised yield rate that does not account for compounding.
- APY (annual percentage yield)An annualised yield that accounts for compounding — the standard quote for variable-rate lending.
- Compound yieldThe yield realised when interest is reinvested at the same rate it's earned, producing exponential growth.