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Feb 14
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AVOID
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Craig Lurich
Head of Vaults at Chaos Labs
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Craig states that yields above 20% in the current market are the "danger zone" and compares them to the collapse of Anchor Protocol. The demand for leverage has cooled. Therefore, any protocol offering >20% APY is likely subsidizing it with inflationary token emissions or taking on opaque, catastrophic risk (like uncollateralized lending). Sustainable yield is currently <10%. Avoid or Short protocols promising "too good to be true" yields (>20%) as they are likely structurally unsound. A sudden bull market mania could temporarily sustain high yields through Ponzi-nomics, squeezing shorts. |
The Block
BlackRock buying UNI and other DeFi updates, ...
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