Crypto Long & Short: Where DeFi yield really comes from (and why it broke this spring)
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- David Plisek of Solstice Finance argues that most money lost in DeFi this spring was not stolen by hackers but eroded inside yield strategies that quietly stopped working.
- April's DeFi drawdown totaled $13 billion, the figure Plisek uses to illustrate how a single headline yield number hides the mechanics underneath.
- Plisek contends that a published yield rate reveals almost nothing about the actual source of the return, leaving participants exposed when the underlying strategy breaks down.
- Crypto Long & Short features the analysis as its lead column this week, framing the breakdown as a transparency problem rather than purely a security one.
Why it matters: Plisek's argument reframes DeFi risk: if $13 billion evaporated in April because yield strategies silently failed — not because contracts were hacked — then investors who chased headline APYs without understanding the underlying mechanics absorbed the losses, making yield-source disclosure the actual vulnerability to underwrite going forward.
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