I’ve been looking at yield aggregators lately, and the APY can be dozens of percentage points at every turn—it looks really impressive. But in plain terms, what you’re earning: is it money other people are paying you, or is it your own funds that you’re actually losing? Inside these contracts, there are hidden hedge funds, lending protocols, and even market makers—nested layer after layer, and you have no idea who the counterparty is. No matter how high the TVL is, withdrawals will still be blocked.

Recently, a certain place introduced a tax on withdrawals, and everyone’s mindset changed when it came time to cash out. Basically, I’m not only watching the APY numbers, but also the “signals”: for example, whether the protocol’s TVL is stable, whether the contracts have an audit, and whether anyone shows up to sing dissent in community governance proposals. These are far more reliable than the return rate.