APR (Annual Percentage Rate)
The annual rate of interest paid on an investment or charged on a loan without accounting for compounding.
In-Depth Explanation
APR represents simple interest. If you stake $1,000 at 10% APR without reinvesting, you receive exactly $100 after 12 months.
Practical Market Example
Real-World Application
A staking validator advertising 5% APR pays simple interest at a rate of 5% per annum.