Definition
Yield in crypto refers to the income or rewards generated from holding or using digital assets, measured over a specific period. It is usually shown as an annual percentage rate (APR) or annual percentage yield (APY), indicating how much extra value the assets produce. Yield can come from sources such as interest, protocol rewards, or fees shared with participants in decentralized finance.
As a concept, yield helps compare how productive different crypto opportunities are in terms of generating returns. Higher yield means a greater rate of return relative to the amount of crypto committed, while lower yield indicates a smaller rate of return. The exact level of yield depends on the design of the protocol, market conditions, and how rewards are distributed among participants.
In Simple Terms
Yield is the extra crypto earned on top of what is already owned, shown as a percentage over time. It captures how much additional value digital assets can generate when they are locked, lent, or otherwise used in decentralized finance. Thinking of yield as the “growth rate” of a crypto position makes it easier to understand how quickly holdings may increase under a given arrangement.