Triple Digit Yield

Definition ∞ Triple digit yield refers to an annual percentage yield (APY) or annual percentage rate (APR) that is 100% or greater. In decentralized finance, these exceptionally high returns are often offered on liquidity provision, staking, or yield farming protocols, typically denominated in newly issued or volatile tokens. Such yields are frequently unsustainable and carry significant risks, including impermanent loss, protocol exploits, and token price depreciation. They attract capital but demand careful assessment of the underlying mechanisms and associated volatility.
Context ∞ Triple digit yields frequently feature in cryptocurrency news, often attracting significant attention from investors seeking rapid returns in the volatile DeFi market. While enticing, these yields are often subject to rapid changes and can mask substantial risks, prompting warnings from financial analysts. Understanding the sustainability and true cost of such high returns is critical for participants in the digital asset ecosystem.