Separate Real Yield From Emissions

A pool advertises 24% APY: 3% trading fees, 2% lending interest, and 19% new-token rewards. Yield attribution plus FMEA failure modes The common trap is comparing the 24% headline to a lower-yield pool as if every percentage point has the same quality. If most of the return is paid in a volatile reward token, the failure mode is not just lower yield; it can be reward-token drawdown, exit crowding, and liquidity thinning at the same time. Attribute the yield Organic base = 3% fees + 2% interest = 5%; incentive layer = 19% reward token. The base and incentive components…

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