> For the complete documentation index, see [llms.txt](https://the-fedz.gitbook.io/the-fedz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://the-fedz.gitbook.io/the-fedz/the-fedz-elements-rules-and-tokenomics/where-does-the-yield-come-from/current-yield-45-apr-early-phase-might-change-rapedly.md).

# Current Yield: 45% APR (Early Phase might change rapedly)

The Fedz has only just started operating.

At this stage, **TVL and trading volumes are still small**, so it is difficult to measure “organic” returns in a statistically meaningful way. Early numbers are inherently noisy, and short-term performance does not yet reflect the system's long-term economics.

Because of that, the current **45% APR** should be understood as a **bootstrapped yield**.

***

#### Why the Yield Is High Right Now

Early Fedz participants are taking on:

* system risk,
* liquidity risk,
* and bank-run risk in an unproven environment.

At the same time, they are:

* committing capital early,
* helping markets form,
* and validating the system under real conditions.

To make this effort and risk worthwhile, **The Fedz is intentionally subsidizing early yields**.

This is not meant to represent steady-state returns.\
It is an **early adopter incentive**, common in new financial systems and infrastructure.

***

#### How This Evolves

As The Fedz grows:

* TVL increases,
* trading volume increases,
* fee-based revenue becomes dominant,

Bootstrapped yield will gradually give way to **usage-driven yield**.

Over time, returns should increasingly reflect:

* real market activity,
* capital efficiency,
* and the system’s role as a liquidity and issuance layer.

***

#### Summary

* The current 45% APR is an early-phase incentive
* Volumes and TVL are still small
* Yields are partially bootstrapped
* Early adopters are compensated for higher risk
* Long-term yields will depend on real usage

Early participation is rewarded because early risk is real.