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Fake Interest, Real Losses: Deconstructing The Crypto Yield Illusion

The Fortress Versus The Glass House

The Volatility Trap

The Future Landscape and Strategic Shifts

Investors will eventually reject the high-risk, high-inflation models like the restaking ones. They will demand yields backed by real-world assets. The 4.5% to 5.5% APY from restaking looks attractive now, but it relies on complex software layers that could fail.

Conclusion

Do not get me wrong, I am not against Defi. I am for Defi but we need to pivot from what we are right now to something more sustainable. Perhaps exploring more meaningful use cases will help churn out real yields.

image credit: Author

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