How DeFi yields are generated 🤔
The number you see moving in your balance isn't money being credited every day. It's the change in the value of the units you hold of that coin. In this article we explain how it works.
Your balance is made up of units 📊
When you hold a coin with yields in the belo app, your balance is represented by a number of units.
💡 Example:
If you have 100 units and each is worth $1.03, your balance is $103. If the value rises to $1.05, your balance becomes $105. If it drops to $1.01, your balance becomes $101 — without the number of units changing.
What can change is the value of each unit. If that value goes up or down, your total balance moves in the same direction, even if you still hold the same number of units.
The yield is not paid by belo or by the coin's issuer. It comes from the activity of the decentralized finance (DeFi) protocol where the virtual asset is allocated. That's why it's eventual, variable, and not guaranteed.
What is the "generated yield" you see in the app
In the coin detail screen, we show you a list we call generated yield. We calculate it day by day so you can track how your balance evolves in a simple way.
That number is an informational calculation: it reflects how much the value of your units changed during that period. We show it this way to give you a clear reference point, but it's not a credit or a payment. By the nature of the mechanism, that number can vary depending on how the protocol behaves.
What happens if you pay, transfer, or withdraw balance
When you use your token balance, the number of units you hold decreases. It's not that money is deducted while the units stay the same: the units needed to cover that transaction are no longer in your balance.
The reverse is also true: if you add balance in the token, you add units, and the yield is calculated on that new amount.
💡 Example:
If you have 100 units and make a transaction equivalent to 10 units, you're left with 90. Future yields are calculated on those 90 units.
What you need to know ✅
Yields are eventual, variable, and not guaranteed.
They are not paid by belo or by the coin's issuer. They depend on the activity of a DeFi protocol.
The number of units of your coin doesn't change due to yields. What changes is the value of each unit.
The number in the app is a reference calculation, not a credit.
Operating with virtual assets and DeFi protocols involves risks.
You can turn yields on or off from each coin's menu.
If you have any questions or need help, contact us through the chat in the app and we will assist you 💜