The APY Illusion: Why Chasing Yield in DeFi Often Leaves Farmers Poorer Than When They Started
Triple-digit APYs have lured countless crypto investors into yield farming strategies that, on paper, appear transformative. In practice, a combination of impermanent loss, token inflation, gas fees, and smart contract risk frequently converts those theoretical returns into real losses. This article examines the structural flaws embedded in most yield farming programs and offers a disciplined framework for distinguishing genuinely sustainable yield from elaborate wealth redistribution schemes.