Native Yield
Yield built directly into an asset itself (such as a staking reward passed through automatically), rather than requiring a holder to separately deposit it somewhere to earn a return.
Native yield is yield built directly into an asset itself — for example, a stablecoin or token design that automatically passes through an underlying staking reward (see Kaavon's "Liquid Staking" glossary definition) to holders — rather than requiring a holder to separately deposit the asset somewhere else specifically to earn any return at all.
Simply holding an asset with native yield in an ordinary wallet is enough to earn the return, a meaningfully different experience from needing to actively seek out and manage a separate yield-generating deposit, though it's worth understanding exactly what underlying mechanism actually generates that yield before assuming it's risk-free.
Examples
- A stablecoin with native yield might automatically pass through the staking reward earned on its underlying collateral, without the holder needing to do anything extra.
- Native yield means simply holding the asset is enough to earn a return, unlike a yield that requires separately depositing the asset into a different product.