Understand this: yield has to come from somewhere. If you can’t understand in simple terms where yield comes from, what risk you are being compensated for bearing, then the yield is likely not sustainable. It rests on temporary venture capital subsidies or from inflows into the protocol from other investors. As the recent crypto crash reminds us,... See more

The Defi bull market, started by COMP liquidity mining in Summer 2020, has turned many Defi protocols into rapidly growing revenue monsters. You would assume that this puts them in a comfortable financial position, and a superficial look at DAO treasuries seems to confirm that.