What is the definition of yield in the context of cryptocurrency?

1 answers

• Dec 28, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, defines yield in the context of cryptocurrency as the return on investment that investors can earn by participating in various activities within the crypto ecosystem. These activities include staking, lending, liquidity provision, and yield farming. By staking their tokens or providing liquidity to decentralized exchanges, investors can earn additional tokens or rewards. Yield farming, in particular, involves providing liquidity to decentralized finance protocols and earning governance tokens as rewards. It's important to note that yield in the crypto space can be highly lucrative, but it also comes with risks. Investors should carefully assess the risks and rewards before participating in any yield-generating activities.
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