Real Yield

Definition ∞ Real yield in decentralized finance denotes the actual, sustainable economic return generated by a protocol that is derived from genuine economic activity, such as transaction fees, lending interest, or protocol revenue sharing. This contrasts with inflationary token rewards or speculative gains. It signifies a yield that is not reliant on continuous new capital or token dilution. Real yield is considered a more robust and enduring form of return.
Context ∞ The discussion around real yield is a significant trend in DeFi, emphasizing long-term sustainability and value accrual. A key debate involves accurately identifying and measuring true real yield, distinguishing it from unsustainable token emissions or subsidies. A critical future development to watch for is the increasing demand for protocols generating verifiable real yield, leading to a shift in how value is assessed and generated within the digital asset economy.