DeFi’s yield model is broken — Here’s how we fix it

Opinion by: Marc Boiron, chief executive officer of Polygon LabsDecentralized finance (DeFi) needs a reality check. Protocols have chased growth through token emissions that promise eye-popping annual percentage yields (APYs) for years, only to watch liquidity evaporate when incentives dry up. The current state of DeFi is too driven by mercenary capital, which is creating artificial ecosystems doomed to collapse. The industry has been caught in a destructive cycle: Launch a governance token, distribute it generously to liquidity providers to boost total value locked (TVL), celebrate growth metrics, and watch helplessly as yield farmers withdraw their capital and move to the next hot protocol source: https://cointelegraph.com/news/de-fi-s-yield-model-is-broken?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound