Locked yield refers to the earnings generated from staking or lending cryptocurrency that are not immediately accessible. In many staking or yield farming protocols, investors lock their assets for a set period in exchange for rewards, often in the form of additional tokens or interest. During this time, the capital is essentially immobilized.The main advantage of locked yield is the potential for higher returns compared to other forms of passive income, such as traditional savings accounts. However, this comes with risks, including market volatility and the possibility of losing access to funds if the protocol experiences issues or if the user mismanages the locking process.It’s important for investors to carefully assess the terms and risks associated with locked yield strategies. They should consider the duration of the lock, the expected yield, and any potential penalties for early withdrawal. Understanding these factors can help in making more informed decisions regarding investments.