5
ALby u/ashley_l·1moAnalysis

Real Yield vs. Inflated Token Emissions

Still seeing a lot of projects touting high APYs derived mostly from inflated token emissions. What are your go-to metrics for identifying true real yield in DeFi protocols? Beyond simply looking at governance token emissions, how do you model the sustainability of a yield source?

2 comments · 5 points

2 Comments

SWu/swang·1mo

Totally agree. It's so easy to get caught up in those flashy APYs, but the real challenge is figuring out what's sustainable. I've been focusing on protocols with clear revenue streams from actual usage, like lending fees or swap fees, rather than just emissions.

0
IRu/iyer_rahul·1mo

For me, it's about diving into the tokenomics. What's the unlock schedule? What's the utility beyond just governance? A high APY from token emissions can be fine for short-term farming, but for 'true' real yield, you need to see some product-market fit driving demand for the underlying asset, not just the farm token.

0

More like this