Tokenized yield refers to the process of converting yield, or returns from an investment, into digital tokens that can be traded or transferred. This is commonly seen in decentralized finance (DeFi), where yield farming or staking generates rewards for users who lock up their assets.These tokens represent a claim to future returns, allowing holders to benefit from the underlying investment without directly managing it. For example, when users stake tokens in a liquidity pool, they might receive new tokens that represent their share of the generated yield. Tokenized yield provides flexibility, as these tokens can often be traded on secondary markets. This mechanism increases liquidity and makes it easier for investors to realize gains or adjust their positions.Ultimately, tokenized yield helps democratize access to investment opportunities by allowing more people to engage in earning potential, even if they lack the capital to invest directly.