It is a crucial necessity for you actors, whether beginners or in training, to properly master these acronyms.
Let's go with the TVL at first:
It's the total value locked on a protocol to be brief.
Why is it so important?
It is the most important factor to consider before choosing a DeFi protocol. It represents the level of trust users have in the protocol.
No one will want to put a penny on a platform where there are no locked liquidity.
Where to find the TVL?
To do this, you need to use appropriate tools like @DefiLlama or Dex Screener, they provide a detailed view of the protocols.
APR & APY…
Now let's talk about numbers, the interest.
We often choose to lock our assets on platforms looking to make profits on assets.
The APR is the return on investment calculated taking into account simple interest.
The APY is the return on investment calculated taking into account compound interest and the annual rate. Like, your earnings generate other interest in a way.
If you choose to lock your assets on a platform soon, pay attention to these distinctions to see what would optimize your yield the most.