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DeFi yield refers to the returns generated by putting crypto assets to work within decentralized finance protocols. Instead of holding tokens passively, users can earn income through lending, staking, or providing liquidity to decentralized exchanges. These activities are powered by smart contracts that automate transactions and distribute rewards transparently.

One of the key attractions of DeFi yield is the potential for higher returns compared to traditional financial products. Yields are driven by factors such as market demand, liquidity needs, and protocol incentives, making them dynamic and often competitive. More advanced strategies, like yield farming, involve actively moving assets between platforms to capture the best available rates.