The DeFi Chronicle: 600,000% APY and Harmony Incentives…Is this for real?
Delayed gratification is the nemesis for the overactive trader. How many times have you sold an investment only to watch its price rise dramatically from the price you sold it at? Some are fine with this scenario and others mentally agonize thinking, “Why didn’t I…?” or “I should have held some…” or “Just my luck. I sell and it rockets higher.”
Such is investing. And while some learn from these experiences, others sadly repeat the same mistakes. Crypto is traditional investing on steroids with three Monster Energy Drinks and an ivy league college student’s Adderall quota during finals week. So when you see 600,000% APY you may be taken aback or you may just realize this is part of the 2021 crypto market. Enter Euphoria.
Is the APY sustainable? Probably not. Will the APY come down? Probably. How does it work? You can try to figure it out, but it can be deduced to a combination of speculation and a game of chicken.
Olympus DAO (OHM), residing on Ethereum, set off a chain reaction of forked copycats invading competing smart contract platforms. Its current 7,369% APY seems paltry compared to its new and improved competitors. Ethereum’s crazy gas fees illustrate how easy it is for less fee-intensive chains to steal market share.
