Yield mechanics
Understand what the percentage leaves out.

Yield explanations need units, a time period, a reward source, and an exit. Without these, two percentages can appear comparable while describing different activities. This tag collects the mathematical and operational questions that should accompany a quoted reward rate.

Read the staking article to distinguish APR from APY and understand what compounding assumes. Then work through the liquidity-pool example to compare a pool position with a hold-only baseline. Both articles separate token amounts from their reference-currency value and explain where a simplified model stops representing a real position.

Use the worked examples as tools for checking assumptions, not as forecasts. Actual outcomes can depend on reward changes, price movements, costs, permissions, liquidity, and protocol-specific withdrawal rules. A calculation can be arithmetically correct while answering the wrong question. State the baseline and exclusions before drawing a conclusion from a rate or a pool-value comparison.

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