The Difference Between Temporary Yield and Sustainable Yield in DeFi
One of the most exciting aspects of decentralized finance is the ability to generate yield directly on-chain. With just a few clicks, users can deposit assets into different protocols and begin earning returns. Because of this accessibility, APY quickly became the most visible metric in DeFi. Users often compare opportunities by yield percentage and move their capital toward the highest number they can find. But as the ecosystem grows more mature, a new perspective is emerging. Not all yield ...
The Difference Between Temporary Yield and Sustainable Yield in DeFi
One of the most exciting aspects of decentralized finance is the ability to generate yield directly on-chain. With just a few clicks, users can deposit assets into different protocols and begin earning returns. Because of this accessibility, APY quickly became the most visible metric in DeFi. Users often compare opportunities by yield percentage and move their capital toward the highest number they can find. But as the ecosystem grows more mature, a new perspective is emerging. Not all yield ...
Why APY Is the Most Misunderstood Metric in DeFi
In the early days of decentralized finance, one number dominated every conversation: APY. Users scanned dashboards looking for the highest yield, protocols competed to display bigger percentages, and capital quickly flowed toward whichever opportunity appeared most profitable. But over time, it has become clear that APY alone does not tell the full story. In fact, one of the most important lessons in DeFi is that the highest APY is not always the best opportunity. Sophisticated investors unde...
Why APY Is the Most Misunderstood Metric in DeFi
In the early days of decentralized finance, one number dominated every conversation: APY. Users scanned dashboards looking for the highest yield, protocols competed to display bigger percentages, and capital quickly flowed toward whichever opportunity appeared most profitable. But over time, it has become clear that APY alone does not tell the full story. In fact, one of the most important lessons in DeFi is that the highest APY is not always the best opportunity. Sophisticated investors unde...
