Discover how Decentralized Finance (DeFi) impacts the accounting industry, the role of crypto accounting, and the features of dedicated crypto accounting software.
Yield refers to the earnings generated and realized on an investment over a particular period of time, expressed in a percentage.
In financial terms, yield refers to the earnings generated and realized on an investment over a particular period of time. It is expressed as a percentage based on the invested amount, current market value, or face value of the security. It includes the interest earned or dividends received from holding a particular security. In the crypto world, yield can also refer to the earnings from various Decentralized Finance (DeFi) protocols where users can lend, stake or otherwise delegate their assets to earn returns. This is commonly referred to as yield farming.
For example, if you stake your cryptocurrencies in a DeFi protocol and receive additional tokens as a reward, those additional tokens represent the yield of your investment.