Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.
In-Depth Explanation
Real yield = Yield from fees/revenue - Token inflation. A 25% APY paid in inflationary tokens isn't 'real' if the token is inflating 20%. True real yield comes from sustainable sources: trading fees, borrow interest, or liquidation proceeds. It's the gold standard for evaluating DeFi yields.
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Related Terms
Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Annual Percentage Yield
APYThe annualized return on an investment accounting for compound interest.
Sustainable Yield
Yield that can be maintained long-term because it's backed by real economic activity, not temporary subsidies.
More in Yield
View all →Mercenary Capital
Capital that moves between protocols purely to chase the highest incentives, with no loyalty or long-term commitment.
Annual Percentage Yield
APYThe annualized return on an investment accounting for compound interest.
Annual Percentage Rate
APRThe annualized return on an investment without accounting for compounding.
Impermanent Loss
ILThe loss in value compared to simply holding assets, caused by providing liquidity to an AMM as prices diverge.