Today, I checked the yield aggregator again and saw a bunch of “looks amazing” APYs. To put it plainly, the numbers behind them are not magic—it's just contracts plus counterparties doing their jobs. On the contract layer, there are all sorts of permissions, upgrade loopholes, and routing that loops around and around; even if the underlying pools are fine, that top layer might leak first. As for the counterparties, it gets even more mysterious: they skim fees on lending, slip on market making, and in the end, the returns are like a weather forecast—showing clear skies, but when you step out, you’re drenched.

Recently, everyone keeps putting RWA, US bond yields, and on-chain yield products in the same comparison, and I think that’s quite reasonable—but also quite dangerous. Because US bonds at least have the rules written on paper, while on-chain rules are written in code, with human nature and liquidity sentiment thrown in… Anyway, I’m not getting excited about APYs right now. I’ll first review the contract permissions, then see exactly who the money gets aggregated to. That’s it for now—I’ll peel back the permissions of this aggregator’s vault contract again tonight.