Protocol yield refers to the returns generated from participating in the governance and operation of a blockchain protocol. It often comes from activities such as staking tokens, providing liquidity, or earning rewards for validating transactions.Users can earn protocol yield by locking up their assets in a decentralized finance (DeFi) platform. In return, they receive rewards, often in the form of additional tokens, which can accumulate over time. The yield can vary based on factors like market conditions, the specific protocol’s rules, and the performance of the underlying assets.This concept is appealing to investors looking for passive income or those wishing to support network security and functionality. However, potential risks include market volatility, smart contract vulnerabilities, and changes in protocol incentives, which can affect overall returns. Understanding protocol yield helps investors make informed decisions about where to allocate their assets and how to manage associated risks.