Glossary

Plain definitions for the terms used across the site.

APY

Annual Percentage Yield. The projected yearly return of a position, including compounding. Monad APR shows Net APY (see below).

Net APY

The APY displayed by Monad APR after consolidating known yield components: base yield, rewards, and native yield from the underlying asset. See APY, TVL, and Categories.

Base APY

The yield generated by the protocol mechanics themselves (lending interest, swap fees, etc.), excluding incentives.

Reward APY

Yield from token incentives, usually emitted by the protocol or a partner. Reward APY can disappear suddenly when emissions stop.

Underlying APY

Yield generated by the underlying asset itself. Example: an LST already earning staking yield is added to the pool's own APY.

TVL

Total Value Locked. The dollar value of assets currently deposited in a pool or protocol. TVL is a proxy for depth: higher TVL usually means smaller slippage on entry and exit.

LP

Liquidity Provider. A position that supplies two or more assets to an automated market maker (AMM) and earns a share of swap fees. LPs are exposed to impermanent loss.

AMM

Automated Market Maker. A swap protocol that prices assets via a formula (constant product, stable curve, etc.) instead of an order book. Uniswap is the canonical AMM.

Impermanent Loss (IL)

The opportunity cost of providing liquidity vs. simply holding the two assets. When the price ratio of a pair changes, the LP position rebalances against you. The loss becomes "permanent" only if you withdraw at that point. Single-asset and same-peg pairs have no (or minimal) IL.

LST

Liquid Staking Token. A token that represents a staked underlying asset and accrues staking yield. Examples on other chains: stETH, rETH. LSTs let you keep liquidity while earning staking rewards.

ERC-4626

A standard for tokenized vaults. Many yield aggregators expose ERC-4626 vaults so other protocols can deposit and redeem in a uniform way. Monad APR has a dedicated detector for ERC-4626 positions.

Vault

A smart contract that pools user deposits and runs a yield strategy on their behalf. Vaults can auto-compound, rotate strategies, or hedge.

Lending

A market where users deposit assets to earn interest paid by borrowers. Withdrawals are usually instant unless utilization is too high.

Staking

Locking an asset to secure a network or protocol in exchange for rewards. Native staking often comes with an unbonding queue.

Farming

Providing capital (LP, single asset, NFT) to earn extra token rewards on top of the protocol's base yield.

Perps

Perpetual futures. Derivative products that let you take leveraged long or short exposure without an expiration date.

MON

The native gas token of the Monad network. You need a small amount of MON to pay for transactions on Monad.

WMON

Wrapped MON. An ERC-20 wrapper around MON used by DeFi protocols that expect a token interface rather than the native asset.

Risk Score

A 0-10 synthetic score computed by Monad APR, where higher means safer according to available data. See Risk Score.

Confidence

How much trust to put in a risk score. high, low, or unknown depending on data depth and metadata maturity. See Confidence, Badges, and Flags.

Single / Multi exposure

single: the position is primarily exposed to one asset, no IL.
multi: the position depends on several assets, possibly with IL.

Outlier

A flag set when the source marks the APY as abnormal compared to its peers. The yield can still be real, but it deserves a closer look.

Suspicious

A flag set when Monad APR considers the data unreliable: extreme APY, source disagreement, or unstable values.

Override

A manual adjustment Monad APR applies when automatic data is not enough, for example capping a score after a known exploit. Overrides are intentionally conservative and visible in the breakdown.

Slippage

The difference between the expected price of a swap or LP entry/exit and the price actually realized. Worse on shallow (low TVL) pools.

Bridge

The on/off-ramp between Monad and another chain. Bridge dependencies can affect liquidity: funds may not be instantly available on either side. See Start and Onboarding.

Cooldown

The minimum time between two notifications for the same triggered alert. Prevents repeat spam when a threshold remains crossed. See Alerts.