Too Long; Didn't Read
Most protocols follow a common growth pattern over time.
In the early stages, they offer high returns even on small investments. However, in the later stages, even substantial capital may not yield significant returns. This is not an accidental situation but a core factor of the supply and demand dynamics in the market that DeFi protocols follow.
Despite its fundamental nature, this issue can be overcome. There are multiple solutions, including manual and automated yield aggregators. To start, let’s explore the core dilemma of DeFi protocols.