The Hidden Cost of High APY in DeFi
In DeFi, high APY has always been one of the biggest attractions. When users open yield dashboards, the first instinct is usually the same: find the highest number and move capital there. This behavior shaped the early culture of decentralized finance. Protocols competed to advertise bigger returns, and liquidity flowed quickly between platforms offering the most attractive yields. But as the ecosystem grows, a more important question is starting to emerge: what is the real cost of that yield...
The Hidden Cost of High APY in DeFi
In DeFi, high APY has always been one of the biggest attractions. When users open yield dashboards, the first instinct is usually the same: find the highest number and move capital there. This behavior shaped the early culture of decentralized finance. Protocols competed to advertise bigger returns, and liquidity flowed quickly between platforms offering the most attractive yields. But as the ecosystem grows, a more important question is starting to emerge: what is the real cost of that yield...
The APY Trap: Why DeFi Needs a Better Metric
In decentralized finance, one number tends to dominate every conversation: APY. Open any dashboard and you’ll see it immediately. Protocols highlight it, users compare it, and liquidity often flows toward the pools offering the highest percentage. For many participants, the logic seems simple: higher APY equals better opportunity. But this assumption hides a deeper problem. In reality, APY is one of the most misunderstood metrics in DeFi, because it rarely reflects the true quality of a strat...
The APY Trap: Why DeFi Needs a Better Metric
In decentralized finance, one number tends to dominate every conversation: APY. Open any dashboard and you’ll see it immediately. Protocols highlight it, users compare it, and liquidity often flows toward the pools offering the highest percentage. For many participants, the logic seems simple: higher APY equals better opportunity. But this assumption hides a deeper problem. In reality, APY is one of the most misunderstood metrics in DeFi, because it rarely reflects the true quality of a strat...
