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Block #9

DeFi & lån

Decomposing APY

A percentage means nothing until you know who pays it. DeFi has four sources of yield, and three dry up as soon as markets cool.

Dani OosterhuisSkriven av Redacteur payments, GroningenUppdaterad Granskad av redaktionen

The four sources

Borrowing interest is the most honest source: someone pays to use your money, and the rate is variable.

Trading fees accrue to liquidity providers, but the position drifts toward the weaker asset of the pair.

Staking rewards are structural network issuance, paid in the network's own coin.

Token emissions are marketing: the protocol prints its own coin to attract users. Rarely sustainable.

Costs that eat the return

Network fees hit small positions hardest.

Vault performance fees and compounding costs come on top of that.

Tax matters too — compare net, not gross.

Judging an offer in five minutes

Identify the counterparty paying the yield. If you cannot name them, dilution is paying you.

Check track record, value secured and incident history. New plus high yield is the most dangerous combination.

Test the exit: can you close in one transaction without major slippage?

Rekommenderas av redaktionen

Externa parter. Block #9 förvarar inte dina tillgångar. Inte investeringsrådgivning.

Vanliga frågor

APR versus APY?

APR is the raw rate; APY assumes compounding, which only helps if you actually compound.

Is impermanent loss real?

It becomes permanent when you exit, and can exceed the fees earned.

Is there risk-free yield?

No. Even a dull stablecoin pool carries contract, peg and regulatory risk.

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