10 years ago if a masked man shouted out on the street, “Gimme your money and I’ll earn you all a 246,000% return every year!”
Who would trust him? Besides the fact that he’s a masked anon, why would anyone believe in the possibility of a 246k% return on their money?
Unfortunately, fast forward 10 years and we find that DeFi users are trusting this man in even more suspicious conditions (at least the man on the street was a physical being in a location — in DeFi…).
This isn’t saying that every DeFi protocol offering eye-popping APYs is a nefarious street swindler. Most of the time the intentions of these protocols are simply wrapped up in the buzz and hype of the DeFi era they were born in. Or sometimes they need those inflationary offerings just to survive the first couple months in such an uber-competitive space.
On the contrary, we believe the problem lies more with the user’s level of clarity on APYs — or rather, what they are shown and what’s hidden in most yield opportunities.
Steadefi intends to remedy this by…
Providing insight into yield sources
In yield farming, the user should know what makes up their X% APY -> t eg trading fees from leveraged liquidity pairs, dex incentive tokens (from where and what rate), and additionally any potential incentives from our own platform.
And for complete clarity, users should be able to see their “projected APYs” in USD fiat terms since this value is still regarded (for now) as the true return on your investment.
Providing complete historical trends of APYs
Instead of a “snapshot” of the APYs at the time of investment, a user should be able to see the entire history of how that APY has fluctuated since its start. Every cryptocurrency trader studies token price charts religiously, so why can’t DeFi farmers do the same with APY charts? Only then can they make a reasonably informed decision before depositing their funds in a particular vault.
Providing ROIs that match the initial APY
This is where things get a little tougher, but we’re up for the challenge. As hinted previously, Steadefi’s vaults won’t be offering “mind-blowing APYs” (though they’ll still be fairly high!), and instead we’ll be focusing on accuracy and predictability — we want our APYs to match the USD-based ROI as closely as possible, regardless of market conditions or the protocol being used (Trader Joe, Pangolin, etc).
Interested in learning more about Steadefi and our upcoming products?
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