DeFi’s Next Phase: From Yield Hunting to Yield Management
In the early days of decentralized finance, the strategy for many users was straightforward: find the highest APY and move capital there. Dashboards ranked opportunities by yield, and liquidity constantly shifted across protocols in search of better returns. This “yield hunting” culture helped DeFi grow quickly. New strategies appeared every week, and protocols competed aggressively to attract deposits. But as the ecosystem becomes more mature, investors are starting to recognize that finding...
DeFi’s Next Phase: From Yield Hunting to Yield Management
In the early days of decentralized finance, the strategy for many users was straightforward: find the highest APY and move capital there. Dashboards ranked opportunities by yield, and liquidity constantly shifted across protocols in search of better returns. This “yield hunting” culture helped DeFi grow quickly. New strategies appeared every week, and protocols competed aggressively to attract deposits. But as the ecosystem becomes more mature, investors are starting to recognize that finding...
Why APY Is the Most Misunderstood Metric in DeFi
For a long time, the DeFi ecosystem has revolved around a single number: APY. Dashboards display it prominently, protocols promote it aggressively, and users often compare opportunities based purely on which platform offers the highest yield. At first glance, this makes sense. If one strategy offers 6% and another promises 20%, the choice seems obvious. Higher APY should mean better returns. But in reality, APY is one of the most misunderstood metrics in DeFi. Experienced capital allocators d...
Why APY Is the Most Misunderstood Metric in DeFi
For a long time, the DeFi ecosystem has revolved around a single number: APY. Dashboards display it prominently, protocols promote it aggressively, and users often compare opportunities based purely on which platform offers the highest yield. At first glance, this makes sense. If one strategy offers 6% and another promises 20%, the choice seems obvious. Higher APY should mean better returns. But in reality, APY is one of the most misunderstood metrics in DeFi. Experienced capital allocators d...
