Yield farming's real long-term viability?

asked by u/larissa.oliveira · 17d · 1 answers

Been pondering the sustainability of some of these stratospheric APYs we're seeing in yield farming. It feels a lot like the early ICO days, where the promise was huge, but the underlying tokenomics for many projects just didn't hold up. Are we really seeing fundamental innovation driving these returns, or is it more of a liquidity game that's eventually going to fizzle for a lot of these smaller projects? Feels like chasing the dragon for anything outside of the mega-caps, and even those have their own set of risks. Curious to hear if anyone thinks differently, or sees a path for sustainable long-term yield in places I'm missing.

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  • u/wei_adams· 5 pts· 17d

    That's a really interesting point about the ICO days comparison. I think there's definitely a mix of both innovation and the liquidity game at play, but it's hard to separate them out sometimes. Are there any specific metrics you look at to gauge the 'fundamental innovation' aspect beyond just the APY?

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