2026-01-16 08:39:01

The truth about DeFi yields: When the market turns, do those attractive yields just disappear into thin air?

Think carefully, when users are attracted to various liquidity mining and yield farming products, they usually only see a number—APY. But what are the mechanisms behind it, the risk buffers, and the assumptions involved? Few people really explain this clearly.

Why do those supposedly stable yield strategies collapse when the market fluctuates? Why does the phrase "decentralized finance innovation" often turn into a manipulation of user psychology?

These issues not only affect users' fund safety but also reflect deeper problems in the DeFi ecosystem regarding transparency and education. From the risk design of yield farming to the presentation of APY data, the entire chain needs to be re-evaluated.

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BearMarketSurvivor

· 6h ago

After so many years of yield farming projects, the main idea is that the higher the APY, the faster you should move. This logic hasn't changed. In simple terms, it's about packaging risk as returns to show you. When the market is stagnant, it can still fool people, but once it moves, it instantly drops back to zero.

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OnchainDetective

· 6h ago

I had already guessed it. According to on-chain data, those so-called stable yields are just illusions. Tracking multiple addresses reveals how outrageous the fund flows are.

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AirdropHunter420

· 6h ago

After all these years of DeFi, it's still the same trick. An APY of 5000% in one month, and next month it drops to zero. Do you really think we're all just fools? I've seen through it long ago. Those yield farming projects rely on fooling newcomers; the old users harvest and then cut the newcomers, cycle after cycle. Basically, it's a Ponzi scheme disguised as "innovation." Liquidity mining? Haha, it's just mining your wallet's money. The most frustrating part is that the risks are downplayed, and the returns are exaggerated. Their sense of aesthetics is truly remarkable. The problem is most people don't read the contract details at all; they just chase after that shiny APY number. No wonder they get caught and lose everything.

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GasFeeSobber

· 6h ago

Halfway through, I remembered my blood and tears story from March... Those 400% APY are really like a mirage. The fastest to run away, the term "stable income" in the crypto circle is just a joke. Honestly, looking at yield farming now is no different from gambling; the higher the APY, the more I fear.

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