🔍 What Is Real Yield in DeFi?
Real yield is a metric used to judge whether a DeFi protocol’s returns are economically sustainable, or if they rely mainly on token inflation.
Instead of focusing on flashy APYs, real yield asks a deeper question:
👉 Are rewards funded by actual protocol revenue, or by new token emissions that dilute holders?
💡 Why Real Yield Matters
During past DeFi cycles, many protocols offered extremely high APYs to attract users. These rewards often came from heavy token emissions.
📉 When emissions slowed or stopped:
APYs collapsed
Token prices fell
Liquidity disappeared
This exposed the difference between temporary incentives and sustainable income.
⚖️ Real Yield vs Inflationary Yield
✅ Real Yield
Comes from real revenue (fees, interest, MEV, service income)
Does not dilute token holders
Sustainable over time
❌ Inflationary Yield
Paid through new token minting
Dilutes supply
Works short term, fails long term
🧠 Why Investors Care Now
As DeFi matures, capital is shifting toward:
Protocols with cash-flow generation
Fee-sharing or buyback mechanisms
Long-term sustainability over hype
Real yield helps investors separate healthy protocols from unsustainable yield farms.
📌 Key Takeaway
High APY doesn’t always mean high value.
Real yield = sustainable rewards backed by real economic activity.
That’s the foundation of the next DeFi cycle 🚀
$DeFi $ETH $RealYield
#CryptoEducation