A yield contract is a financial agreement that allows investors to earn returns on their cryptocurrency holdings. In essence, these contracts involve lending out digital assets to other parties, such as platforms or borrowers, in exchange for periodic interest payments.Investors typically lock their cryptocurrencies in a smart contract. The lending platform then uses these assets for various purposes, like trading or providing loans. In return, investors receive a yield, which can be paid in the same cryptocurrency or in another asset.The yield is often attractive, as it allows holders to earn passive income on their investments. However, participating in yield contracts comes with risks, including the potential for default by borrowers or platform vulnerabilities. It’s essential for investors to assess these risks and conduct thorough research before engaging in yield contracts.