I've only commented on finding a stable TVL protocol, but that's a bit much. So, I'll conclude with an example using data currently available on the official Magma website. 🔋 MAGMA - SUI Pool [CLMM] - TVL: $259.81 - APR: 697.15% Currently, the above pool has approximately $259 deposited, and with an APR of 697.15%, it can earn over 697% annual interest. However, because the TVL is low, if another user deposits the same $259, the APR will be roughly halved. For example, if A were to eat an apple alone, and B joined in and had to share, the reward would be halved. For DeFi protocols, there may be some differences depending on your position and the liquidity invested by others, but this generally means that the above scenario will occur. Therefore, the stable protocol I described at the beginning refers to a protocol large enough that the APR won't fluctuate significantly even if someone invests a larger seed. That's what I meant. Just as nothing is free, there's a reason why high interest rates are offered. TVL [Total Value Locked] - Total Deposited Assets or Total Locked Value - Upbit Investor Protection Center Research #MAGMA #DeFi #LP
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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