DeFihi Lab / Category

Yield & liquidity
Trace the return to its mechanism.

2 connected guides to help you ask more precise questions.

A percentage can summarize very different activities. Network staking, lending, and liquidity provision should not be treated as interchangeable simply because an interface presents each as a way to earn. Start by asking what generates the reward and what must remain true to receive it.

The staking guide explains reward units, APR, compounding assumptions, and withdrawal constraints. The liquidity-pool guide follows a deliberately simplified 50/50 constant-product example to show why a pool position can differ from simply holding its original assets. Its assumptions exclude fees and other complications so the source of the difference remains visible.

Read both guides with three questions in mind: where does the return come from, which risks can alter it, and how is the position unwound? Keep token quantity separate from reference-currency value. A larger number of tokens is not the same as a positive total return, and an advertised rate does not supply the missing assumptions about the path to an exit.

For the wider context, return to the complete DeFihi Lab library or explore the DeFi Staking topic hub.

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