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What is Yield Curve?

Crypto Terms Glossary: What is Yield Curve?

A yield curve is a method for plotting data on a graph to measure yields on different investments over various time periods. Traditionally used to plot yields for financial instruments like bonds, yield curves are also useful for yield farming in crypto.

Yield curves show the relationship between the interest rates (or borrowing cost) and the term (or time to maturity) of an asset or group of assets.

There are three main types of yield curves including inverted, normal, and flat. Normal or upward sloping curves signify economic growth, while inverted or downward sloping curves signify economic decline or recession.

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