What it means
What money earns over time, from interest, fees or rewards, usually shown as a yearly rate.
In DeFi, yield comes mainly from borrowers paying interest, traders paying fees and token rewards. If you can't see where it comes from, be careful.
How it works
Yield is never guaranteed: rates are variable and deposits can lose value.
Related terms
| Term | What it means |
|---|---|
| APY | Annual percentage yield: what a deposit would earn over a year at today's rate, with interest added back as it comes in. |
| Variable rate | An interest rate that changes over time, often by the minute, with no fixed or guaranteed return. |
| Supply rate | The variable interest earned for supplying tokens to a lending market. |
This glossary explains terms in general. It isn't investment, tax or legal advice.