I just looked over the chain gaming data a moment ago. One project’s mining/earning inflow surged, but the liquidity depth is as thin as paper. The output is dumped into the pool—then the price crashes hard downward. The APY looks tempting, but the principal is almost gone. Put simply, the inflation model wasn’t controlled properly: the attractive output draws in miners, not players. Liquidity runs out faster than anyone.

I even researched how fees are allocated in these kinds of pools before. After doing the math again and again, I finally found that it all ends up as paying the protocol’s bills—just “wage labor” for small fry.

Recently there’s been a lot of noise around funding rates. Some people say extreme cases could be a reversal signal; others say it means the bubble should be pushed further. Either way, no matter which way the market moves, I think those outputs that can smash through the underlying pool—don’t touch them. Play with a hammer, huh.