Yield
defi · metrics
The return earned on crypto assets over time, commonly expressed as APR, APY, rewards, fees, or interest.
Yield is the return generated by lending, staking, liquidity provision, or other strategies. It may come from protocol rewards, borrower interest, trading fees, token incentives, or a mix of sources.
Yield is not the same as guaranteed profit. Smart contract bugs, impermanent loss, token price changes, slashing, liquidity shortages, and incentive cuts can reduce or erase returns.
Related terms
Annual Percentage Rate (APR)
→The yearly interest rate without accounting for compound interest.
finance · trading
Annual Percentage Yield
→The effective annual return after accounting for compounding, commonly used to compare yield products.
finance · trading
DeFi
→DeFi uses smart contracts to provide permissionless financial services such as trading, lending, borrowing, and asset issuance.
blockchain · finance · concept