defi-yield

Comparing DeFi yields requires aggregating rates from multiple protocols and computing risk-adjusted scores to evaluate lending, staking, and liquidity pools. This modular framework differentiates real yield from token yield to identify sustainable opportunities.

The difference between real yield and token yield in DeFi is sustainability. Real yield is generated by actual protocol revenue, while token yield relies on unsustainable incentive emissions, making risk-aware analysis crucial for avoiding inflated, temporary APYs.

Calculating risk-adjusted APY for crypto yield strategies involves applying a modular framework that aggregates yields and computes risk scores. This assesses the sustainability of lending, staking, and liquidity pool opportunities across multiple protocols.

Yes, you can test DeFi yield strategies for a specific time horizon like 6 months by running scenario testing. This evaluates which lending, staking, or liquidity pool strategy offers the best risk-adjusted APY over your chosen time window.

You should avoid high APY liquidity pools during yield farming when the returns are primarily token yield rather than real yield. Risk-aware analysis identifies these unsustainable incentives, helping you avoid strategies with poor risk-adjusted returns.