Crypto Long & Short: Where DeFi yield really comes from (and why it broke this spring) — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- David Plisek of Solstice Finance argues in Crypto Long & Short that the bulk of DeFi losses this spring stemmed from yield strategies that quietly stopped working, not from hacker theft
- April's DeFi drawdown totaled $13 billion, the figure Plisek uses to anchor his analysis of where yield really originates
- Plisek demonstrates that a headline yield number reveals almost nothing about the underlying source of the return, making advertised APYs misleading by design
Why it matters: DeFi investors who chased headline APYs through the spring rally absorbed a $13 billion drawdown not from exploits but from strategy failures — a gap that means due diligence on the mechanism behind a yield, not just its size, is now a prerequisite for capital allocation in DeFi.
Ask SkimNews
