I don't want to sound like a fool here, but for me this is like a Chinese person trying to explain the road to me. I get that this can be really interesting. But I just don't understand where the rewards are coming from. And if there is one lesson that I have learned in my life, it is don't invest in what you don't understand.
Could you explain me in layman's terms?
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Good question. My 2c are that the rewards are sustainable only as long as people are buying those coins. I.e. it is the trust in the future that keeps those APYs. In a bearmarket, if the trust is no longer there, you still get the nominal xy% yield, but the underlying tokens will be worthless and as such the yield of your investment. It is a sophisticated, leveraged way of speculation.
That’s an answer I expected, I don’t trust it, so I stay away from it! Thanks for the explanation
Just my opinion, I am sure that many see it completely differently and praise it as the best.