| APR | Annual Percentage Rate refers to the yearly interest generated by an amount that's charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual cost of funds over a year or income earned on an investment over a year. APR doesn't take into account compounding interests. Source. |
| APY | Annual Percentage Yield is the actual rate of return earned on an investment, taking into account the effect of compounding interest. Source. |
| Dust | Dust is a trace amount of cryptocurrency left over after a trade or transaction. It has small or negligible monetary value (from a fraction of pennies to a few dollars) and is usually not enough to cover the cost of a transaction, meaning that what remains is "trapped". |
inP2P | Balance of a given user matched P2P. |
| Interest-bearing Token (ibToken) | Interest accumulating tokens that represent a share in a lending pool that grows in value as borrowers pay interest on them. ibTokens are used to keep track of the funds they have deposited as well as any interest earned. |
| Matching Engine | Morpho's algorithm that matches users P2P. See the dedicated section for more information. |
onPool | Peer-Balance of a given user in the underlying pool. |
| P2P | Peer-to-Peer. Peer-to-Peer lending connects borrowers and lenders directly, bypassing third parties. |
| P2P APY | Annual Percentage Yield that borrowers and lenders get when matched P2P. |
| P2Pool | Peer-to-Pool. Lenders of a given asset are pooled together and their earnings, paid by borrowers, are shared prorata. |
| Lending pool | Overcollateralized lending P2Pool protocol, such as Aave or Compound. |
| Pool APY | Annual Percentage Yield of the underlying pool. |
| Spread | In the case of lending, the spread is the difference between the lending APY (the % of compounded interests paid to lenders) and the borrowing APY (the % of compounded interests paid by borrowers). |
| Utilization | Percentage of funds supplied that is actually borrowed and thus generating interests. When fully matched P2P, the utilization is 100% by definition. When on the pool, the utilization is below 100% as there is always more liquidity available than borrowed. |