Glossary
KPK glossary for DeFi vault terminology including APR, APY, TVL, ERC-4626, utilisation, liquidity buffers, risk tiers, incentives, rebalancing and curation.
APR and APY
APR is a simple annualised rate, while APY includes compounding assumptions. Neither guarantees future returns.
TVL
Total value locked is the current value of assets deposited in a product or protocol and can change with flows and asset prices.
Risk tier
A risk tier is a curation classification used to help constrain which assets or strategies can be used and at what exposure.
FAQ
What does this Glossary page cover?
This page explains the KPK approach to glossary, including the relevant strategy mechanics, risk considerations and how the topic connects to curated vaults.
Can current rates or parameters change?
Yes. Vault rates, allocations, incentives, liquidity and protocol parameters can change as market conditions and governance decisions evolve.
Where should I check before depositing?
Review the current app metrics, the relevant protocol data and any active incentive campaign conditions immediately before making a deposit decision.