Yield Curve

A yield curve is a method of plotting data on a graph to measure the yields on various investments over time. Yield curves, which are traditionally used to plot yields for financial instruments such as bonds, are also useful for yield farming in cryptocurrency. The relationship between interest rates (or borrowing costs) and the term (or time to maturity) of an asset or group of assets is depicted by yield curves. There are three kinds of yield curves: inverted, normal, and flat. In normal or upward sloping curves, economic growth is indicated, whereas inverted or downward sloping curves indicate economic decline or recession.