Definition ∞ Deposit yield represents the return earned on digital assets placed into a lending or savings protocol. This yield is typically expressed as an annual percentage rate or annual percentage yield and is generated from the interest paid by borrowers or from protocol fees. It reflects the profitability for users who supply liquidity to decentralized finance platforms or centralized lending services. The yield can fluctuate based on market demand for borrowing the specific asset.
Context ∞ News about deposit yield is common in reports on decentralized finance and crypto savings products. Significant changes in deposit yields often signal shifts in market sentiment, liquidity demand, or protocol adjustments. Investors monitor these yields closely as a measure of potential earnings from their digital asset holdings.
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