DeFi Doesn’t Remove Trust — It Engineers It
Adaptive strategies adjust to changing conditions and remain effective longer periods Most strategies fade because they rely heavily on unsustainable incentives models Market participants must differentiate between real and artificial yield sources This is the part many users do not discover until after they have already entered. By the time volatility and execution costs are fully counted, the yield can look very different from the original promise. The displayed number often creates a sense...
DeFi Doesn’t Remove Trust — It Engineers It
Adaptive strategies adjust to changing conditions and remain effective longer periods Most strategies fade because they rely heavily on unsustainable incentives models Market participants must differentiate between real and artificial yield sources This is the part many users do not discover until after they have already entered. By the time volatility and execution costs are fully counted, the yield can look very different from the original promise. The displayed number often creates a sense...
What Makes a DeFi Strategy Actually Sustainable?
But the number being visible does not mean the mechanism is clear. Most users stop at the number, but the real work starts when you ask what sits underneath it. From this point, durability becomes more valuable than peak performance What matters is not only what a strategy pays in theory, but what survives implementation. Most users see the visible rate first and assume it is close to what they will ultimately keep. Impermanent loss, rebalancing costs, execution friction, slippage, volatility...
What Makes a DeFi Strategy Actually Sustainable?
But the number being visible does not mean the mechanism is clear. Most users stop at the number, but the real work starts when you ask what sits underneath it. From this point, durability becomes more valuable than peak performance What matters is not only what a strategy pays in theory, but what survives implementation. Most users see the visible rate first and assume it is close to what they will ultimately keep. Impermanent loss, rebalancing costs, execution friction, slippage, volatility...
