0x0EeA

In the early years of decentralized finance, yield was often treated like a competition. Protocols tried to attract liquidity by offering the highest APY, and users moved their capital to wherever the returns looked the most attractive. This behavior created a culture of yield chasing, where the biggest number on the screen became the main decision factor. While this helped DeFi grow quickly, it also introduced an important limitation: APY alone doesn’t explain the real quality of a yield opp...

For many users entering DeFi, the first number they notice is APY. Platforms display it prominently on dashboards, protocols compete to advertise the highest yield, and investors often move their funds toward whichever opportunity promises the biggest percentage. At first glance, the logic seems simple: higher APY means better returns. But in reality, this assumption is one of the most misunderstood ideas in decentralized finance. The truth is that the highest APY is often the least sustainab...