Definition ∞ On-chain yield strategies involve deploying digital assets directly on a blockchain protocol to generate returns or income. These strategies typically include lending assets to decentralized protocols, providing liquidity to automated market makers, or staking tokens to secure a network. They leverage smart contracts to automate and execute financial operations. The goal is to maximize returns from digital asset holdings.
Context ∞ News frequently covers on-chain yield strategies when discussing decentralized finance (DeFi) innovations and opportunities for asset growth. Discussions often involve the varying levels of risk associated with different protocols and smart contract security. The search for sustainable and high-performing on-chain yield remains a constant topic in the digital asset investment landscape.