A yield token is a digital asset that represents a claim on the future income or interest generated by another underlying asset. These tokens allow the separation of an asset’s principal from its yield component, making each independently tradable. This mechanism offers flexibility for investors to speculate on or manage future earnings.
Context
Yield tokens are an innovative financial primitive within decentralized finance, enabling new forms of capital efficiency and risk management. News often discusses new protocols that create and facilitate the trading of these tokens, offering insights into market demand for future yield. The valuation and liquidity of yield tokens are important metrics for market observers.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
