Glossary · DeFi
Real yield
Also: organic yield
Real yield is return paid out of revenue a protocol actually earns, such as trading fees, borrowing interest, staking rewards or funding payments, as distinct from return paid in newly issued governance tokens.
Related terms
- Yield farming
- Yield farming is the practice of moving capital between protocols to capture the highest combined return from fees, interest and token incentives, and it originated with Compound's COMP distribution in June 2020.
- Funding rate
- The funding rate is the periodic payment exchanged between holders of long and short perpetual futures positions, paid by longs to shorts when the perpetual trades above spot and in the opposite direction when it trades below.
Stay informed
Verifiable crypto journalism, delivered to your inbox.
Weekday mornings. No hype. No financial advice. Just what happened and why it matters.
No spam. Unsubscribe anytime. Read our privacy policy.