What Is Yield?
Yield refers to the return earned on digital assets over time, usually expressed as a percentage. In crypto, yield is commonly generated by putting assets to work through activities such as lending, staking, liquidity provision, or holding yield-bearing stablecoins. Instead of remaining idle in a wallet, assets that generate yield can produce ongoing returns.
Crypto yield can come from multiple sources. In decentralized finance (DeFi), yield is often earned through smart contracts that distribute rewards for supplying liquidity or securing a network. In other cases, yield may be backed by real-world assets, such as interest generated from short-term government securities. The level of yield depends on factors like demand, risk, duration, and underlying mechanisms.
While yield can increase returns, it also involves trade-offs, including smart contract risk, market conditions, or changes in yield rates. Understanding where yield comes from is essential for evaluating sustainability.
KAST supports stablecoin yield sources designed to balance returns with transparency, helping users earn on digital assets while maintaining predictable value.
