Sustainable Yield
Yield that can be maintained long-term because it's backed by real economic activity, not temporary subsidies.
In-Depth Explanation
Sustainable yields come from: trading fees proportional to volume, borrow interest from real demand, or revenue from actual product usage. Unsustainable yields require constant token emissions or new deposits. Ask: 'Where does this yield come from? Can it continue if token price drops 90%?'
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Related Terms
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.
Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Ponzinomics
Derogatory term for token economics that rely primarily on new buyer inflows to pay existing holders, rather than sustainable revenue.
More in Yield
View all →Mercenary Capital
Capital that moves between protocols purely to chase the highest incentives, with no loyalty or long-term commitment.
Annual Percentage Yield
APYThe annualized return on an investment accounting for compound interest.
Annual Percentage Rate
APRThe annualized return on an investment without accounting for compounding.
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.