StakePoint
Solana DeFi Glossary
Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.
APR (Annual Percentage Rate)
The simple annualised rate of return on a staking position without compounding.
Definition
APR (Annual Percentage Rate) is the simple annualised rate of return on a staking or yield-generating position, expressed as a percentage. Unlike APY, APR does not account for the compounding of rewards.
In DeFi staking, APR is typically calculated as the annual reward rate relative to the total staked amount. If a pool distributes 1,000 tokens per year and has 10,000 tokens staked, the APR is 10%.
APR is the more conservative and straightforward way to express staking returns. It is what you would earn if you withdrew rewards rather than reinvesting them.
StakePoint & APR (Annual Percentage Rate)
StakePoint staking pools display APR as the primary return metric. Pool creators configure the reward rate and the displayed APR reflects the current annual return based on total staked amount and reward distribution.
Related Pages
Frequently Asked Questions
What is APR in DeFi staking?
APR is the simple annualised rate of return on a staking position. It does not include compounding — it is what you earn per year based on your staked amount.
How is APR calculated in a staking pool?
APR is calculated as the annual reward amount divided by the total staked amount, expressed as a percentage. As more tokens are staked, the APR per staker decreases.
Related Terms
APY (Annual Percentage Yield)
The annualised return on a staking or yield position including compounding effects.
Staking Pool
An on-chain contract where token holders deposit tokens to earn rewards.
Staking Rewards
Tokens earned by stakers for locking tokens in a staking pool.
Solana DeFi
Decentralised finance applications built on the Solana blockchain.
DeFi Yield
Returns generated by providing liquidity, staking, or lending in decentralised finance protocols.