Dps (damage per second) is how much damage you can do per second with your base attack.

If your base attack did on average 1000dmg per hit, and you could make 1 hit per second your dps would be 1000.

Slower weapon might mean you could make only 1 hit every 2 seconds, so your dps would be 500. Super fast with 2 hits per second and your dps would be 2000.

Damage is a multiplier and determines how much damage your skills (and presumably your base attack?) do on each hit.

You can test it with pets that add damage - look at the damage range for your skills and see how they change when you add a +damage pet.

Ranged weapons ages ago used to have higher damage vs melee weapons which had higher dps.

Now melee weapons have higher everything which I find sad as preferring a ranged gameplay is in most instances the inferior choice

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