Yield Persistence

Yield Persistence refers to the ability of a financial instrument or liquidity pool to maintain its rate of return over an extended period. It measures whether the generated returns are driven by sustainable economic activity, such as transaction fees or borrowing demand, or if they are temporary artifacts of token emission incentives.

In crypto-derivatives, high yield persistence suggests a mature market with organic demand for leverage. Conversely, low persistence indicates a reliance on inflationary reward structures that decay as the protocol matures.

Investors use this metric to differentiate between sustainable income and speculative farming opportunities.