I just looked up a few yield aggregators’ APY, and I was tempted, but after going through the underlying contracts and strategy descriptions carefully, I cooled down. Honestly, no matter how high the APY is, as long as there’s a bug in the contract or something goes wrong with the counterparty (for example, a lending protocol or an LP pool), the principal could go to zero directly.

Recently, RWA and on-chain U.S. Treasury yield products have been getting a lot of hype. They do move traditional steady yield onto the chain, but the liquidation mechanics and custodian risks in those tokenized-Treasury projects really aren’t much simpler than DeFi.

Personally, I still prefer to split my position—allocate some across a few aggregators on different chains—and pair it with some USD stablecoins to earn interest. Anyway, I’m not counting on doubling my money; if I can lose less, then I’ll consider it a win.

As for what hidden traps those high APYs are really hiding behind…