How to Evaluate DeFi Yields in 2025

Introduction

DeFi yields are enticing, but not all are sustainable. This guide walks you through how to evaluate them realistically.

1. Protocol Revenue

Check if the platform actually earns fees. If not, high APYs are probably unsustainable.

2. Token Emissions

Is the yield mostly printing new tokens? If yes, expect dilution.

3. On-Chain Metrics

Use tools like DeFiLlama or Token Terminal to verify data.

Yield ≠ profit. Do your own on-chain research.