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0scar
@0scar
One thing we've paid close attention at Exponential.fi is in making sure you know where your DeFi returns are coming from: yield vs asset appreciation (net of IL/DL)
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0scar
@0scar
Debank, Zerion and a bunch of others are great portfolio "watchers" but they aren't great at determining cost basis and thus returns nor yield
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0scar
@0scar
In my experience, the APRs advertised by protocols are far from realistic. They usually do some version of annualized fees / TVL - crude measure. This ignores liquidity of the tokens, IL/DL, entry/exit fees or slippage (looking at you @curve), etc.
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0scar
@0scar
To solve for the basic question "how much yield have I earned?", we ended up opening positions in multiple pools and continuously simulate reward claims and LP token redemptions to track precisely the value per token and thus yield earned
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0scar
@0scar
I'm not saying protocols intentionally lie or misrepresent APRs but when measured on a cash-on-cash basis, defi investors should expect to earn yield at a different rate than advertised. Most times lower but in rare cases higher rates too.
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