Yield
Why high APY can be misleading
Emissions, short windows and leverage wear the same costume.
- 01Short window
- 02Emissions
- 03Leverage
- 04The number you saw
The costume
A high displayed APY can be a short, lucky window, a token the protocol printed, leverage on a thin spread, or a points programme that is not cash. Annualising a few days of emissions is how a temporary subsidy becomes a headline.
What the number leaves out
It rarely nets every fee, rarely shows the path to exit, and never includes the loss if the strategy breaks. Historical data does not predict the next period. AltVaults does not sort vaults by highest yield for that reason.
A better question
What is the source, how long is the history, what share is incentives, and what is the withdrawal class if the source disappears tomorrow?
Digital assets and DeFi protocols are high risk. You may lose some or all of the assets you deploy. AltVaults DeFi provides software, data and informational tools. It does not provide investment advice, recommendations, brokerage, custody, fund management or guaranteed returns.