Yield (in DeFi)
In short
Yield is the umbrella term for DeFi earnings: from lending, liquidity provision or staking. High percentages always have a source — and often that source is the risk itself.
The honest question: where does the yield come from? Trading fees and interest are sustainable; token subsidies dry up; and triple-digit APYs were historically almost always the prelude to a loss.
What is the difference between APR and APY?
APR is the simple annual rate; APY includes compounding — with daily payouts APY is significantly higher.
Information, not investment advice. More of this? The newsletter.