33 ms·
150% APR? How Are DeFi Yields So High?
- thedudeabides5 5y agoSounds like the answer is people are paying 150% by paying it with printed money. You help me 'stake my liquidity pool' by giving me something linked to ETH, I give you newCoin at some outrageous interest rate, and then pay you that outrageous rate in printed coins. Now traditional finance has something to say about the expected depreciation for this type of situation, but who cares about that stuff. https://www.investopedia.com/terms/c/covered-interest-rate-parity.asp https://www.investopedia.com/terms/c/covered-interest-rate-p...