Staking Yield

Staking yield describes how much reward a user receives relative to the amount of capital committed to staking over a given period. It may be expressed as a percentage or as the number of additional tokens earned.

Yield should be distinguished from APR and APY. APR generally represents a simple annualized rate without compounding, while APY may incorporate the effect of reinvesting rewards. A displayed protocol yield may also be quoted before validator commissions, inflation effects, or changes in the market price of the asset.

Meaningful yield comparisons should consider lock-up rules, unbonding periods, penalty exposure, validator commission, token issuance, and market liquidity. A high nominal percentage does not by itself describe the complete risk or economic outcome.