Basis yield refers to the income generated from holding an asset based on its underlying fundamentals and market conditions. In the context of cryptocurrencies, it often pertains to the returns earned from staking, lending, or providing liquidity.

When users participate in staking, they lock their tokens to support network operations like validating transactions. In return, they earn rewards, contributing to their overall yield. Similarly, when users supply cryptocurrencies to lending platforms, they earn interest on their deposits. Providing liquidity in decentralized exchanges is another way to achieve basis yield.

Users pool their assets into liquidity pools and earn fees from trades that occur within those pools. The yield can vary depending on various factors such as demand, market supply, and the specific mechanics of the platform being used. Investors often seek the highest possible basis yield, balancing potential rewards with associated risks, including market volatility and platform security.