DeFi

Yield

The return on deposited crypto, usually quoted as an annual percentage earned by lending it out or staking it.

Yield is what your crypto earns for being put to use. Lend a stablecoin on Aave and borrowers pay you interest; stake ETH and the network rewards you for securing it. Supplying tokens to a liquidity pool earns a cut of trading fees.

It's quoted as APR (simple) or APY (compounded). A 10% APY means $1,000 grows to roughly $1,100 over a year if the rate holds.

Rates move constantly and aren't guaranteed. High yield usually signals high risk—often thin liquidity or rewards paid in a token that may not hold value.

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