Too Long; Didn't Read
A significant number of DeFi projects are offering insanely high annual percentage yields (APY) This looks attractive to investors, especially retail investors, who are at the most risk. Some projects are nothing more than cash grab schemes. Some yields are rooted in ‘real” revenue, while others are the result of high emissions based on Ponzi-like tokenomics. The assets lent to earn such unrealistic APYs can decrease in value over time, leading to major losses over time.