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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.
1 comments · 1 points
Good point on the risk-adjusted returns. I've found that accounting for gas fees and the time spent managing positions can significantly eat into those advertised APYs, especially on chains with higher transaction costs.