DeFi & Yield

What is real yield in DeFi and how is it different from token emissions?

Real yield is DeFi return paid from genuine protocol revenue, such as trading or lending fees, rather than from newly minted incentive tokens. The distinction matters because emission-based rewards can inflate a token's supply and dilute holders, often masking returns that are not sustainable. For example, a protocol distributing a share of its fee income is paying real yield, while one printing fresh governance tokens is paying emissions. Looking at where a yield originates helps separate durable income from temporary incentives that may fade once emissions slow.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.