RE: HIGH APY - does it make you EXCITED or discourage you from investing in DeFi Projects
Hi dear friend @crypto.piotr
Interesting topic you share in the community, from my perspective, people are wary of investing in DeFi projects that offer very high APY, but at the same time avoid investing in projects with very low APY.
Investors currently trust projects that offer attractive APY (neither too HIGH nor too LOW).
From my own experience, when I see a project with a super high APY, I immediately discard it and assume it is a SCAM, on the other hand, when I hear about projects with a super low APY, the first thing that comes to my mind is that it is a consolidated project, for example; PancakeSwap is a consolidated DeFi and most of the APYs in FARMS range between 7% and 20%.
Therefore, those projects with APYs outside the extremes (ideally with APYs between 100 and 150%) are the ones I investigate to find out who is behind the project, and what services it offers and if it has any burning method that stabilizes the inflation process.
Best regards, be well.
Hi @lupafilotaxia
Thank you for sharing your perspective on this topic. It's interesting what you've mentioned, that "at the same time avoid investing in projects with very low APY."
I wonder why is that? I always see huge dividents as either ponzi scheme or any other sign of unsustainable business-model. And I sometimes wonder why so many people do not see it this way.
ps. what means that project is consolidated?
100-150% doesn't sound insane. But for me it still does sound like very unlikely that price of such a token could stay at the same level. I myself would be rather keen to invest in projects offering 10-30% profit in a year time-frame.
Yours, Piotr