Yield is the return earned on crypto assets over time. It can come from staking, lending, liquidity provision, or other protocol-based rewards.
How It Works
A user may earn yield by staking tokens, lending stablecoins, depositing assets into a DeFi protocol, or providing liquidity to a trading pool.
The return can vary depending on demand, risk, token incentives, and market conditions. High yields often come with higher risk.
Why It Matters In Crypto
Yield matters because it gives holders a way to earn on assets they are not actively trading. It also helps power DeFi lending, liquidity, and staking systems.
A practical example: a user deposits stablecoins into a lending protocol and earns interest from borrowers who pay to access liquidity.