That double-digit yield you’re earning (or simply, being promised) now can go to zero when the markets turn. Because the current model relies too heavily on price and policy, failing you precisely when you need it most — during market downturns and economic turmoil. That’s the design, and not a temporary glitch.

But if you build them the right way, as we’re doing with Seasons, yield systems can endure, survive, and thrive during bear markets. Let’s discuss how.

Some DeFi protocols paid 100–1000% APYs at the peak of the frenzied ‘DeFi Summer’ in 2020.

But their reckoning came soon enough, when the bear markets hit around 2022. Average lending yields, for instance, dropped by nearly 89%, even on protocols with billions of dollars in Total Value Locked (TVL).

This phase was one of the most glaring examples of how, when markets go down, yields go down.

So the question is: what causes such unraveling?

There are various factors, some of which are external to DeFi.

Yet overall, they boil down to how crypto-based protocols generate and distribute yield.

Simply put, DeFi yield has two key sources: token emission and short-term price appreciation of a single asset (or, at best, a bunch of them).

The effect of token emission typically unfolds over longer time frames. Protocols issue more and more of their ‘native’ tokens to pay yield, so over time, every token that you earn as yield becomes less and less valuable. That’s classic supply-demand economics, mirroring how inflation erodes the real value of your asset holdings in traditional finance.

Meltdowns fueled by price action, however, are typically more sudden and much more violent. Especially in crypto, where 10–20–30% market swings in either direction are still rather common.

When prices crash, three things happen at once:

• people pull out their money to cut losses and manage risks;

• token rewards denominated in dollar terms lose value;

• liquidity dries up, locking unaware or ‘late’ users on a slippery slope.

Your yield gets caught up in these toppling dominoes. You get caught up too. And in fact, DeFi itself has been caught up in this vicious cycle, failing to truly deliver on its promise to solve the pain points that yield-seekers have faced in traditional finance for ages.

Emission-based models and excessive price-dependence are the problems. Eliminating them is the solution, and Seasons is all about delivering it.

We’re pioneering Yield 3.0 — the novel, end-to-end tokenized architecture that generates yield from real economic activity, not short-term volatility or the speculative hope that prices will go up (and keep going up).

Whenever someone buys or sells $SEAS (yes, it’s both ways, and that’s the beauty), a 10% fee is collected. This fee goes into a ‘pool’ that anyone can verify, eventually flowing out to Seasons nodes (i.e., wallets holding 10,000 or more $SEAS).

The model works regardless of which direction the price of $SEAS or any other asset is currently moving.

As long as there’s activity and movement involving $SEAS — both ‘buy’ and ‘sell’ trades — yield is generated and distributed to nodes.

What’s more: you receive your yield directly in your wallet, in a diversified mix of alternative liquid assets, including Solana memecoins. And you’re free to use these assets any way you like: swap, sell, hold, whatever.

No claiming. No staking. No lock-ups. No fine print.

That, our precious yield-seekers, is how you survive meltdowns and earn simple, sustainable yield in any market condition.

Bull or bear, we don’t care. Capitalize on movement, not direction. Choose real value-creation over foam. $SEAS the yield.

👇 Join us in transforming YieldFi 👇

General Resources:
🌐 Website | ✳️ LinkTree | ⚫ Beacons | 📃 Docs

Connect with and Join the community:
X (Twitter) | Telegram | Youtube | LinkedIn

Originally published: https://seasons.wtf/blog/bears-kill-yield-heres-how-it-can-survive

That double-digit yield you’re earning (or simply, being promised) now can go to zero when the markets turn. Because the current model relies too heavily on price and policy, failing you precisely when you need it most — during market downturns and economic turmoil. That’s the design, and not a temporary glitch.

But if you build them the right way, as we’re doing with Seasons, yield systems can endure, survive, and thrive during bear markets. Let’s discuss how.

Some DeFi protocols paid 100–1000% APYs at the peak of the frenzied ‘DeFi Summer’ in 2020.

But their reckoning came soon enough, when the bear markets hit around 2022. Average lending yields, for instance, dropped by nearly 89%, even on protocols with billions of dollars in Total Value Locked (TVL).

This phase was one of the most glaring examples of how, when markets go down, yields go down.

So the question is: what causes such unraveling?

There are various factors, some of which are external to DeFi.

Yet overall, they boil down to how crypto-based protocols generate and distribute yield.

Simply put, DeFi yield has two key sources: token emission and short-term price appreciation of a single asset (or, at best, a bunch of them).

The effect of token emission typically unfolds over longer time frames. Protocols issue more and more of their ‘native’ tokens to pay yield, so over time, every token that you earn as yield becomes less and less valuable. That’s classic supply-demand economics, mirroring how inflation erodes the real value of your asset holdings in traditional finance.

Meltdowns fueled by price action, however, are typically more sudden and much more violent. Especially in crypto, where 10–20–30% market swings in either direction are still rather common.

When prices crash, three things happen at once:

• people pull out their money to cut losses and manage risks;

• token rewards denominated in dollar terms lose value;

• liquidity dries up, locking unaware or ‘late’ users on a slippery slope.

Your yield gets caught up in these toppling dominoes. You get caught up too. And in fact, DeFi itself has been caught up in this vicious cycle, failing to truly deliver on its promise to solve the pain points that yield-seekers have faced in traditional finance for ages.

Emission-based models and excessive price-dependence are the problems. Eliminating them is the solution, and Seasons is all about delivering it.

We’re pioneering Yield 3.0 — the novel, end-to-end tokenized architecture that generates yield from real economic activity, not short-term volatility or the speculative hope that prices will go up (and keep going up).

Whenever someone buys or sells $SEAS (yes, it’s both ways, and that’s the beauty), a 10% fee is collected. This fee goes into a ‘pool’ that anyone can verify, eventually flowing out to Seasons nodes (i.e., wallets holding 10,000 or more $SEAS).

The model works regardless of which direction the price of $SEAS or any other asset is currently moving.

As long as there’s activity and movement involving $SEAS — both ‘buy’ and ‘sell’ trades — yield is generated and distributed to nodes.

What’s more: you receive your yield directly in your wallet, in a diversified mix of alternative liquid assets, including Solana memecoins. And you’re free to use these assets any way you like: swap, sell, hold, whatever.

No claiming. No staking. No lock-ups. No fine print.

That, our precious yield-seekers, is how you survive meltdowns and earn simple, sustainable yield in any market condition.

Bull or bear, we don’t care. Capitalize on movement, not direction. Choose real value-creation over foam. $SEAS the yield.

👇 Join us in transforming YieldFi 👇

General Resources:
🌐 Website | ✳️ LinkTree | ⚫ Beacons | 📃 Docs

Connect with and Join the community:
X (Twitter) | Telegram | Youtube | LinkedIn

Originally published: https://seasons.wtf/blog/bears-kill-yield-heres-how-it-can-survive