Recently, I've been translating a few APYs from yield aggregators again. To put it simply, those numbers look pretty attractive, but you really need to dig into what’s going on behind the scenes: Are they putting money into lending pools, doing cyclical leverage, or signing “agreements” with market-making or hedging counterparties? Contract risk is easier to assess; what I’m most worried about are those situations where you think everything is transparent on-chain, but in reality, there’s an extra layer of custody or whitelist strategies in the middle. When something goes wrong, all you can do is watch helplessly.

By the way, I want to complain that recently, the on-chain data tools and tagging systems being called “lagging or potentially misleading” isn’t without reason. Now I look at net inflows and active addresses across multiple platforms—don’t just rely on a single chart and get carried away. My approach is: the more absurd the APY, the more I treat it as nonexistent. I try small positions, check if withdrawals go smoothly, see if there are any strange permissions in the contracts—better to be cautious and not chase after small gains. Sigh, it’s really a bit nerve-wracking.