I agree completely with this.
I admit that I don’t understand fully how the high yield are produced – but it seems that they are in part driven by the gov tokens like COMP thrown off by the various underlying protocols Yearn interacts with.
Because these gov tokens are hot and inflating at the moment also, the interest + transaction fees + gov tokens = a large % … but of course, the gov tokens will NOT forever inflate (and may crash) so this is not sustainable.
That’s my understanding – it could be wrong – but knowing EXACTLY how curve.fi/y LP earns 93.13% ROI would be great (i.e. “It’s 30% interest, 40% gov tokens, the rest are transaction fees”).
UPDATE: I’ve done some reading – it appears I’m wrong – it’s NOT ‘mostly gov tokens’ providing the yield – it’s almost ALL transaction fees. So the sustainability of yield is dependent upon the ‘velocity’ of the trading world continuing to accelerate (or at least remain the same).
Again: PLEASE correct me if I have this wrong.