Open any DeFi dashboard and one number dominates the screen: APY. It’s bold. It’s bright. It’s persuasive. And for years, it shaped how capital moved across protocols. Higher APY meant better opportunity. Higher APY meant smarter allocation. Higher APY meant faster growth. But that logic only works if APY tells the full story. It doesn’t.APY Is an Output, Not a GuaranteeAPY reflects projected returns under current conditions. What it doesn’t reflect:What happens when liquidity disappearsWhat ...

Open any DeFi dashboard and one number dominates the screen: APY. It’s bold. It’s bright. It’s persuasive. And for years, it shaped how capital moved across protocols. Higher APY meant better opportunity. Higher APY meant smarter allocation. Higher APY meant faster growth. But that logic only works if APY tells the full story. It doesn’t.APY Is an Output, Not a GuaranteeAPY reflects projected returns under current conditions. What it doesn’t reflect:What happens when liquidity disappearsWhat ...

One of the defining features of DeFi has always been yield. Dashboards display APY front and center, protocols promote their highest returns, and users often move capital quickly to capture the best available opportunities. This behavior helped DeFi grow at an incredible pace. High yields attracted liquidity, encouraged experimentation, and allowed new protocols to bootstrap quickly. But over time, it has become clear that yield alone does not tell the full story. To truly understand the valu...

One of the defining features of DeFi has always been yield. Dashboards display APY front and center, protocols promote their highest returns, and users often move capital quickly to capture the best available opportunities. This behavior helped DeFi grow at an incredible pace. High yields attracted liquidity, encouraged experimentation, and allowed new protocols to bootstrap quickly. But over time, it has become clear that yield alone does not tell the full story. To truly understand the valu...