DeFi Doesn’t Remove Trust — It Engineers It
Changing correlations can alter expected performance of strategies over time Short term incentives often distort true value of DeFi strategies temporarily Why does liquidity leave certain protocols as fast as it enters them What looks generous on the dashboard can feel much thinner after the full set of trade-offs shows up. Gross return and net return can end up being meaningfully different once the full path of execution is taken into account. The number shown on a dashboard is usually only ...
DeFi Doesn’t Remove Trust — It Engineers It
Changing correlations can alter expected performance of strategies over time Short term incentives often distort true value of DeFi strategies temporarily Why does liquidity leave certain protocols as fast as it enters them What looks generous on the dashboard can feel much thinner after the full set of trade-offs shows up. Gross return and net return can end up being meaningfully different once the full path of execution is taken into account. The number shown on a dashboard is usually only ...
What Makes a DeFi Strategy Actually Sustainable?
Temporary yield often comes from emissions designed to attract short term liquidity Market efficiency reduces arbitrage opportunities over time gradually A visible return is easy to admire, but much harder to evaluate without understanding the source. And this is where institutional thinking starts to emerge in DeFi By the time volatility and execution costs are fully counted, the yield can look very different from the original promise. The visible number says very little about the costs requ...
What Makes a DeFi Strategy Actually Sustainable?
Temporary yield often comes from emissions designed to attract short term liquidity Market efficiency reduces arbitrage opportunities over time gradually A visible return is easy to admire, but much harder to evaluate without understanding the source. And this is where institutional thinking starts to emerge in DeFi By the time volatility and execution costs are fully counted, the yield can look very different from the original promise. The visible number says very little about the costs requ...
