0xA050

For a long time, the rules of DeFi seemed simple. If a protocol offered a higher APY, it attracted more users. Liquidity flowed quickly toward the top of the leaderboard, and strategies promising the biggest returns received the most attention. This “yield race” played a major role in the rapid expansion of decentralized finance. But beneath the surface, a quieter shift has been taking place. More investors are starting to realize that raw APY does not necessarily represent the best opportuni...

Every bull cycle in DeFi follows a familiar pattern. A new protocol launches. It advertises an incredibly high APY. Liquidity floods in almost instantly. For many users, this is the core experience of decentralized finance: finding the next opportunity that offers a higher yield than the last one. But this cycle hides an uncomfortable truth. APY is one of the most misunderstood metrics in DeFi. While dashboards highlight large percentage returns, sophisticated capital looks at something very ...