Dimension 7
Economics
Is the yield explainable from the mechanics — and under which assumptions does it hold?
Guiding questions
- Where does the yield come from: fees, interest, emissions, leverage?
- Which assumption must hold for it to persist?
- How does the yield behave if utilization falls?
What the data can answer here
Base and reward APY, TVL history and — for lending markets — utilization figures are visible in the Explorer.
Limit
A high APY is a signal of risk, not a measure of it; a low APY is not proof of safety.
Institutional questions
- Bank
- How would this return be expressed as an interest margin?
- Insurance
- Which economic assumption underpins the calculation?
- Asset management
- What return would remain without emissions?
- Advisory
- What would be an honest expectation for the next twelve months?