Perpetual Yield

Definition ∞ Perpetual yield refers to an ongoing stream of returns generated from digital assets, typically within decentralized finance protocols, without a fixed maturity date. This yield often stems from staking, lending, or providing liquidity, and it continues as long as the underlying protocol operates and the assets remain committed. It represents a continuous earning potential from digital holdings. This offers a sustained return mechanism.
Context ∞ Perpetual yield is a prominent concept in news about decentralized finance investment strategies and the economics of digital assets. Discussions frequently address the sustainability and risk factors associated with various yield-generating protocols, including smart contract security and market volatility. Investors and analysts closely monitor the mechanisms that generate perpetual yield to assess their long-term viability and potential for capital appreciation.