The largest yield on a list often marks the smallest, riskiest pool, because a thin pool must offer more to attract capital and can collapse the fastest.
Master
The hidden part#0905
The top of a yield list is the front of the risk queue. A rate far above the rest is danger, priced.
A rate in the thousands of percent is funded by a temporary token incentive, so the eye-catching number lasts exactly as long as the subsidy paying for it.
Adept
The hidden part#0904
A four-figure rate is a subsidy with a countdown. It lasts exactly as long as the incentive pot funding it.
The term impermanent loss suggests a loss that reverses itself, but it only stays impermanent while you stay in the pool; withdrawing turns it permanent.
Novice
The hidden part#0903
Impermanent loss is impermanent only until you leave. Withdrawing at a diverged price makes the paper loss real.
Earning more of the token you staked feels like yield, but if everyone is paid in the same token, the reward mostly dilutes the very thing it pays out.
Adept
The hidden part#0902
Being paid in what you hold, from new supply, mostly moves the count. A reward everyone receives dilutes the reward.
An advertised annual rate assumes today’s conditions repeat unchanged for a year, but rates move constantly, so the headline describes a world that will not last.
Novice
The hidden part#0901
A yearly rate is a snapshot wearing a calendar. It describes one moment projected across twelve months that will not repeat it.