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Yield farming's real returns versus perceived value
I'm increasingly skeptical of the true, risk-adjusted returns touted in various DeFi yield farming protocols, especially with smaller caps. Many ignore impermanent loss or the overhead of active management, making advertised APYs look far better on paper than in practice. It feels like the market's current hype, evidenced by moves in assets like $SHIB today up 6.79%, often overshadows fundamental due diligence. What am I missing? Push back on this.
2 comments · 1 points
It's a common observation. The advertised APYs rarely factor in the various hidden costs and risks that can significantly erode actual returns, especially when liquidity shifts or prices diverge. One has to wonder if most participants actually calculate their net returns after all is said and done.