Stop, look and… question the yield. High APYs can be an attractive prospect but are they too good to be true? Learning about Real Yield can help you to find out.
, some even over 1000%. Once these APYs dropped as a result of the project's treasuries dwindling, token prices would often plummet as users rushed to sell off the farmed token. Demand for such tokens, it turned out, was supported by emissions rather than their utility.
However, it’s also common to see dilutionary emissions – a scenario when a project distributes APY in a way that is unsustainable in the long run, most commonly by depleting its treasury. Should the project’s revenue not increase, it will be impossible to maintain the same level of APY. Such APY is often distributed in the project’s native token, as a large supply of it is readily available.
Note that while “real yield” is preferably given out in blue-chip tokens, a project distributing its native token could also do so in a sustainable way.The crypto real yield metric is a quick way to evaluate a project's offered yield relative to its revenue. This allows you to see how much of the project's rewards are dilutionary, or mainly supported by token emissions rather than funded by revenue. Let's look at a simple example.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
'Married to Real Estate's Egypt & Mike Get Real About Working TogetherMarriedToRealEstate's Mike Jackson is sharing what it's like to work with your spouse: 'You get to build a legacy, create a brand and inspire people with the person you love.'
Leer más »
Bond strategists take axe to U.S. Treasury yield forecastsU.S. Treasury yields a year from now are forecast to trade sharply lower than the level expected by bond strategists polled by Reuters just one month ago, underscoring how much financial markets have diverged this year from the central bank's view.
Leer más »
Investment Management Software Streamlines Processes for Real Estate Investors and Managers | HackerNoonAgora Real is an investment management system for real estate investors and managers. - realestate realestatetech
Leer más »
DeFi Lender Aave Deploys V3 on Ethereum NetworkThe third version of decentralized lending and borrowing protocol AaveAave has been deployed on the Ethereum blockchain, with a focus on mitigating user risk and capital efficiency. Reporting by oknightcrypto.
Leer más »
Solana DeFi project Friktion shuts down its user platformThe project's website is operating in withdrawal-only mode for all Volts and deposits are unavailable.
Leer más »