The once lucrative stablecoin yields in decentralized finance (DeFi) have sharply declined, marking the end of an era of high returns perceived as risk-free. DeFi lenders and yield farmers are now facing near-zero returns due to a combination of falling token prices, liquidity outflows, and changing risk appetites. This downturn is further exacerbated by traditional finance offering competitive returns, leading to a significant reduction in DeFi yield farming activities.
DeFi Stablecoin Yields Plummet Amid Market Shifts
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