Accrue means to build up or accumulate gradually over time. In crypto and blockchain contexts, it commonly describes how rewards, interest, fees, or even costs are earned or incurred continuously, even if they are not paid out or settled immediately.
How accrual works in crypto
Many crypto products generate returns in a way that effectively accrues. For example, staking rewards can accumulate block by block or epoch by epoch, increasing a user’s claim on rewards before those rewards are actually distributed or withdrawn. Similarly, lending and borrowing markets in DeFi often calculate interest continuously, so both lenders’ interest income and borrowers’ interest expense accrue over time based on utilization rates and protocol rules.
Accrual is closely related to accrual-basis accounting, which recognizes revenue and expenses when they are earned or incurred, regardless of when cash or tokens change hands. That distinction matters because on-chain activity can create economic outcomes, such as owed interest or protocol fees, well before they are claimed, transferred, or realized in a wallet.
Practical examples and real-world context
A common example is accrued interest on a crypto loan. If you borrow assets from a lending protocol, interest may accrue every block. Even if you make no transactions, your repayment obligation grows gradually until you repay, refinance, or get liquidated.
On the flip side, a liquidity provider in an automated market maker may see trading fees accrue to the pool. Those fees can be reflected in the value of the position, even if the provider does not immediately withdraw.
Why it matters
Understanding accrual helps users interpret yields, debts, and protocol revenue correctly. It clarifies the difference between value that is accumulating and value that is actually received, which is essential for managing risk, comparing DeFi products, and tracking performance in the crypto ecosystem.