APR
APR on LayerBank represents variable yield or borrowing cost. Different components can contribute to the number shown in the app.
APR Overview
LayerBank markets can display several rate components. Base lending rates come from market utilization, while additional incentives or yield embedded in an asset can change the user's effective return.
APR Components
- Supply Base APR: interest paid to suppliers from borrower activity.
- Borrow Base APR: variable cost paid by borrowers.
- Underlying Yield: yield native to an LST, RWA or other yield-bearing asset.
- Incentive APR: temporary rewards from LayerBank or ecosystem campaigns.
- Looped APY: effective strategy yield after repeated supply/borrow exposure and borrowing costs.
Looped APY
Leverage increases both exposure to supply yield and exposure to borrowing cost. A simplified strategy view is:
The live Earn interface should be used for current strategy values because market rates and incentives can change.
Why APR Changes
APR can change with utilization, new deposits, borrowing demand, incentive budgets and token prices. A high displayed APR should not be treated as a fixed return.
Frequently Asked Questions
Is LayerBank APR fixed?
No. Base rates and reward APR can change as utilization, market demand and incentive conditions change.
What is the difference between APR and looped APY?
APR describes an annualized rate component, while looped APY reflects the combined effect of leveraged supply exposure, borrowing cost and eligible rewards.
Can a loop have negative yield?
Yes. If borrowing costs and losses exceed supply yield and incentives, the net strategy return can become negative.
Reviewed for layerbank.trade on November 2, 2026.