Ever wonder where all that yield was coming form in Defi? Well you should have...
Everywhere you looked there were yields of 8%, 10%, 20%, and don't even get me started on the really crazy small defi projects that had hundreds and thousands of percent yields.
Where did it all come from?!
Pretty simple really...
It came from you!
If you don't know where the yield is coming from, you are the yield.
The yield was simply inflating away your investment.
The only hope was that other people would buy in after you to keep your initial asset from losing too much value while the inflation rolled in.
(Source: https://twitter.com/coinbeastmedia/status/1535651968386969601/photo/1)
Sounds like a ponzi right?
I won't call a duck a duck in this instance, you can figure that part out, but I will say that just about all this defi stuff was completely contingent on never ending growth, which isn't sustainable as we are very clearly seeing right now.
The next time these high yields start tempting you, remember that if you don't where the yield is coming from, it's coming from you.
Upvoted! Thank you for supporting witness @jswit.
Please check my new project, STEEM.NFT. Thank you!
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Thanks for making things clear for me
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This is interesting, you need to keep up bringing us more gist from this point. I love passive earning and this whole yield farming. Definitely, can't wait to explore more gems as I stake a number of coins on my decentralized app from https://atomicwallet.io/, for cool APY.
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Your post was upvoted and resteemed on @crypto.defrag
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