“Degen yield” is derived from the spending of gamblers willing to take a losing bet in exchange for the entertainment value. In traditional lotteries, this money all goes to the operator's profits. Instead, Degenerus Protocol takes nothing from the pot and its degen yield is returned to the players who supply the labor and capital that let the game grow: affiliates, pass holders, and sDGNRS stakers.
Degenerus works because people choose to buy lottery tickets. The core loop of the protocol is using the money those degens lose to reward players who supply the scarce resources that are needed to run the game.