What Is Yield Stacking In DeFi - DeFi APR vs APY

Description

What is yield stacking in DeFi, and why does that high APY number almost always mislead you? Tonight we break down how DeFi yield actually works, the difference between APR vs APY, and why most “high-yield” opportunities are a layered illusion. If you’ve ever looked at a vault showing 20%+ returns and wondered if it’s real — this episode will completely change how you evaluate DeFi opportunities. 🧠 What You’ll Learn In This Episode 📊 What Is Yield Stacking in DeFi? • Why most DeFi yields are made up of multiple layers • How protocols combine base yield, token emissions, and incentives • Why understanding yield composition is critical before depositing ⚖️ APR vs APY — The Illusion Explained • The real difference between APR and APY • Why dashboards prefer showing APY (and why that can mislead you) • How non-compounding rewards lower your real returns 🏗️ The 3 Layers of DeFi Yield Layer 1 — Base Yield (The Only “Real” Yield) • Generated from actual borrowing demand (Aave, Morpho) • The most stable and persistent layer Layer 2 — Token Emissions • Extra yield paid in protocol tokens • Dilutes over time as more users join • Often highest for early participants Layer 3 — Campaign Incentives • Short-term rewards designed to attract liquidity • Usually the biggest part of advertised APY • The first layer to disappear ⚠️ The Blended APY Trap That “22% APY” you see? It’s often something like: • 3% base yield • 7% token emissions • 12% temporary campaign rewards When that campaign ends, your yield can drop dramatically — sometimes overnight. 🔍 How To Verify DeFi Yield Before You Deposit Before you chase yield, always check: • Base rate directly on lending protocols (Aave, Morpho) • Incentive platforms like Merkl or Turtle • Campaign duration and reward budgets • Tools like DefiLlama for real yield comparisons Join WiseGuys TG https://t.me/Web3WiseGuys 🔔 Call To Action 👇 Drop a comment during the stream 👍 Like to support the MOB 🔔 Subscribe so you never miss a Battle or Jackpot This is how the MOB levels up. 🌐 Follow Us for More Content: Twitter: https://x.com/RayofLight38 https://x.com/FomoHead https://x.com/SNOOPY_M_2 https://x.com/salvuccikaimana Website: https://web3wiseguys.com 👉 Hit Subscribe, smash Like, and turn on Notifications so you never miss a crypto & AI update. #Bitcoin #Ethereum #CryptoTrading #Ai #AgenticSpark #MOBFI #MOB #Blockchain #SocialInvesting #Web3 #AgenticEconomy #CryptoGaming #DeFi #NFTs #CryptoStrategy #CryptoAdoption ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 🎦 Video footage and Background music: all video footage and background music used is either original content I personally created or licensed through either CC-BY or from Videoblocks and Pexel. 👉 FINANCIAL DISCLAIMER This channel is intended to share ideas and entertainment. We DO NOT GIVE FINANCIAL ADVICE! Please consult a licensed financial advisor and do your own research before making any financial action. All content on this channel is for informational purposes only and should not be construed as professional financial advice or recommendation to buy or sell any securities. Trading stocks, ETFs, other securities, and/or cryptocurrencies poses a considerable risk of loss. Neither host or guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered. The content in this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Should you need such advice, consult a licensed financial or tax advisor. When you make purchases through links in this video description, the author may earn a commission. Never buy crypto just because you see a YouTuber talking about it. Always do your own independent research before investing in any coin. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ If you can’t find where the yield is coming from — that’s your first red flag. 🌍 Why This Matters DeFi isn’t just about finding the highest APY — it’s about understanding where the yield comes from. This episode helps you: • Avoid chasing unsustainable yields • Identify real vs temporary returns • Understand how liquidity incentives work • Make smarter decisions in DeFi Because in DeFi, the biggest mistake isn’t losing money — it’s misunderstanding the game you’re playing. Want to create live streams like this? Check out StreamYard: https://streamyard.com/pal/d/5734079964119040