DeFi stablecoin yields have significantly declined, reaching low levels or even zero, as token prices fall, total value locked (TVL) shrinks, and investor risk appetite diminishes. The reduction in protocol incentives and rising traditional finance risk-free rates have further impacted returns. Currently, sustainable yields are primarily derived from real income sources such as trading fees and interest spreads, moving away from the previous era of 'risk-free high returns.' The DeFi sector is now facing a structural adjustment as unsustainable incentives disappear, necessitating a return to more realistic yield expectations.
DeFi Stablecoin Yields Plummet Amid Market Adjustments
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