Yield is the price paid for something: liquidity, time, risk, complexity, leverage, or governance influence. A useful DeFi yield framework starts by identifying the source of return, the party paying it, and the conditions that can make it disappear.
Reading Path
- How to make DeFinancial products work for you gives a broad strategy map.
- DeFi farmer toolbox covers practical tools and habits.
- Vaults: DeFi Investing Streamlined? explains managed yield products.
- Risk? Yes please, but exactly how I like it covers tranching and structured risk.
- Yields are like fine wines introduces fixed-rate protocols.
- CRV Wars shows how governance influence becomes yield through bribes and emissions.
Core Concepts
- APR and APY define how return is quoted.
- Yield farming, liquidity mining, and staking cover common incentive forms.
- Vault and auto-compounding describe managed strategies.
- Impermanent loss and slashing are recurring risk categories.
