Crypto Long & Short: Where DeFi yield really comes from (and why it broke this spring)
In this week's Crypto Long & Short, Solstice Finance's David Plisek argues that most of the money lost in DeFi this spring wasn't taken by hackers but by yield strategies that quietly stopped working. Looking at April's $13 billion drawdown, he shows that a headline yield number reveals almost nothing about whether it will hold under stress, laying out four questions an allocator should ask before committing capital.
Why It Matters
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Key Facts
- Fact 1: Looking at April's $13 billion drawdown, he shows that a headline yield number reveals almost nothing about whether it will hold under stress, laying out four questions an allocator should ask before committing capital.
In this week's Crypto Long & Short, Solstice Finance's David Plisek argues that most of the money lost in DeFi this spring wasn't taken by hackers but by yield strategies that quietly stopped working. Looking at April's $13 billion drawdown, he shows that a headline yield number reveals almost nothing about whether it will hold under stress, laying out four questions an allocator should ask before committing capital.
(Original synthesis pending human/AI review — generated by the stub provider from the source excerpt only, not copied verbatim from the full article.)
Original source: CoinDesk
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