Technical Definition
Real Yield
Yield paid out of a protocol's actual revenue rather than out of newly issued tokens.
By Crypto University Editorial
Token Emissions · Yield Farming · APY (Annual Percentage Yield) · Total Value Locked (TVL) · Governance Token
✦ Key Insight
It separates sustainable income from incentive programmes with an expiry date, which is the difference between a business and a promotion.
✕ Common Misconceptions
Accepting the label at face value. Some protocols describe emissions-funded payouts as real yield. Look at the revenue figures rather than the marketing.
Detailed Explanation
If a protocol earns trading fees or interest and distributes a share of that income, the yield is funded by real economic activity. If it prints tokens to pay depositors, the yield is funded by dilution. Real yield is usually far lower and far more durable.
In Practice
“A protocol distributing a share of trading fees pays a modest yield that persists, while a neighbouring protocol advertising a far higher rate funds it entirely from emissions that taper away.”