APY Is Only Half the Story in DeFi
In decentralized finance, yield is often presented as the ultimate metric. Users browse dashboards, compare percentages, and quickly move their capital to the protocol offering the highest APY. This behavior has shaped the early culture of DeFi. Protocols compete to display the biggest numbers, and liquidity flows rapidly from one opportunity to another. But as the ecosystem matures, it’s becoming clear that APY alone does not tell the full story. What truly matters is how much risk is taken ...
APY Is Only Half the Story in DeFi
In decentralized finance, yield is often presented as the ultimate metric. Users browse dashboards, compare percentages, and quickly move their capital to the protocol offering the highest APY. This behavior has shaped the early culture of DeFi. Protocols compete to display the biggest numbers, and liquidity flows rapidly from one opportunity to another. But as the ecosystem matures, it’s becoming clear that APY alone does not tell the full story. What truly matters is how much risk is taken ...
Beyond APY: The Metric DeFi Needs to Grow Up
For most of DeFi’s history, one number has dominated the conversation: APY. Open any dashboard and you will see it immediately. Protocols promote it. Yield farms compete on it. Users chase it. The assumption is simple: Higher APY means a better opportunity. But in reality, this assumption is one of the most misleading ideas in decentralized finance. As DeFi matures, a more important concept is beginning to replace it: risk-adjusted yield. And understanding this shift is essential for anyone s...
Beyond APY: The Metric DeFi Needs to Grow Up
For most of DeFi’s history, one number has dominated the conversation: APY. Open any dashboard and you will see it immediately. Protocols promote it. Yield farms compete on it. Users chase it. The assumption is simple: Higher APY means a better opportunity. But in reality, this assumption is one of the most misleading ideas in decentralized finance. As DeFi matures, a more important concept is beginning to replace it: risk-adjusted yield. And understanding this shift is essential for anyone s...
