Yield

Yield refers to the earnings generated from an investment over a specific period, typically expressed as a percentage of the initial amount invested.

How Yield Works in Crypto

In the crypto space, yield is commonly earned through staking, lending, yield farming, or liquidity provision. Users lock up their crypto assets on platforms or protocols in exchange for rewards, often paid in the same or different tokens. These returns can be fixed or variable, depending on the platform and strategy used.

Why Yield Matters

Yield gives crypto holders a way to generate passive income instead of just holding assets. It encourages network participation, supports DeFi ecosystems, and allows users to maximize the utility of their holdings. However, yield strategies often carry risks like impermanent loss, smart contract vulnerabilities, or platform insolvency.