Recently, I’ve been looking at the APYs of a few yield aggregators again. The numbers look tempting, but my first reaction now isn’t “go for it,” but rather to check where the money is actually going: is it coming from lending pools or market making, are the contracts layered on top of each other, who holds the liquidation and pause permissions... In plain terms, APY often just hides “who the counterparty is” more deeply.

If I hadn’t paid more attention to the contract permissions at the time, I might have been led astray by words like “auto-compounding” or “strategy optimization,” only to realize after something goes wrong that I can’t even clearly identify the source of the risk. By the way, I’ve also been thinking about the recent NFT royalty disputes—it's basically the same: everyone wants liquidity and returns, but ultimately someone has to pay the cost, just in a different place. Anyway, I’ll just keep my positions smaller for now, so I can feel more at ease.