Yield
Last updated 17 October 2026Last verified 17 October 2026
What is yield in DeFi?
The return paid to capital. In DeFi, sources include trading fees, interest, staking rewards, points, and token incentives. Separating real yield (fees and interest from genuine economic activity) from subsidized yield (token emissions that dilute existing holders to pay new ones) is the central analytical task in any DeFi allocation decision. Use the DeFi Yield Calculator to compare against TradFi benchmarks.
TradFi equivalentThe return on capital, used just as loosely on-chain as off it. A quoted APY is a headline rate rather than a yield to maturity, since it resets continuously and part of it is usually paid in the protocol's own token, so it has to be decomposed before it can be set against a bond yield.