The Harsh Reality of DeFi: The Collapse of Stablecoin Yields, Welcome to the Era of RiskAuthor: Justin Alick
Compiled by: ShenChao TechFlow
Has the era of easily obtaining cryptocurrency earnings officially ended? A year ago, putting cash into stablecoins felt like finding a cheat code. Generous interest, ( supposedly ) zero risk. Today, this dream has turned to ashes.
The yield opportunities of stablecoins in the entire cryptocurrency sector have collapsed, leaving DeFi lenders and yield farmers trapped in a near-zero return wasteland. What happened to that "risk-free" annual percentage yield (APY) golden goose (cash cow)? Who is to blame for the yield farming turning into a ghost town? Let’s dive deep into the "autopsy report" of stablecoin yields; it’s not a pretty sight.
The dream of "risk-free" returns is dead.
Do you remember those wonderful old days? ( Around 2021 ), various protocols were throwing out USDC and DAI like candy.
DeepFlowTech·Just Now