Seeing these DeFi and CeDeFi projects frequently advertising staking tokens for a 20% annualized return reminds me of the collapse of Luna/UST and the Anchor protocol that offered a 20% annualized return for staking UST.
Being able to provide users with a 20% annualized return indicates that these DeFi and CeDeFi projects can use the cryptocurrencies staked by users for lending or investment, and achieve returns exceeding 20% annually.
Today, the OCBC Bank in Singapore offers a wealth management plan where users earn an interest of 3.02% for depositing new currency for one year.
I want to ask those users who stake cryptocurrencies in DeFi and CeDeFi projects: how can you be sure that these DeFi and CeDeFi projects can use your crypto funds to help you earn back 20%?
