Yield

Yield is the income a financial asset generates, expressed as a percentage of the amount deployed.

DEFINITION

Yield is the income generated by a financial asset or deposited position, expressed as a percentage of the amount deployed over a given period.

IN PLAIN ENGLISH

Think of it like the interest a savings account pays: yield is what your idle funds earn simply by being put to work, without you needing to trade anything.

KEY TAKEAWAYS

  • Yield is expressed as a percentage: for example, a 5% annual yield on $1,000 generates $50 over one year
  • It is distinct from capital gains: yield is the income a position produces, not any change in the asset's price
  • Yield can be fixed or variable: in crypto earn products, rates fluctuate based on market conditions and are never guaranteed
  • In DeFi and CeFi products, yield is typically generated through staking, lending, or liquidity provision, the mechanism determines both the rate and the risk.

ON OUINEX

On Ouinex Earn, yield is available on USDC deposits at a variable rate, letting you put idle funds to work between trading sessions.

LEARN MORE

See how yield works on Ouinex Earn: read the full Academy guide

Back to the Glossary