Yield

DeFi

Return generated by an asset or strategy.

Yield is the income or reward from deploying capital, such as interest, fees, or emissions. In DeFi, yields can be variable and influenced by liquidity, incentives, and risk.

Frequently asked questions

  • How do I measure yield?
    Compare initial and current value over time, accounting for fees and token price changes.
  • Why does yield change?
    Market conditions, incentives, and utilization. Treat quoted APYs as estimates, not guarantees.
  • How do I improve risk adjusted yield?
    Diversify, reduce fees, and avoid strategies you cannot explain.