A clear example is Abel Finance, the first lending protocol in the ecosystem #Aptos .
Launched back in 2023, seemingly — tried and tested over time. But in reality:
⚠️ Right now it is practically dead — TVL is only ~$400,000.
💰 Yields on many assets are 100–150% APY. Sounds enticing? In reality — a trap.
If you provide liquidity there, it is highly likely that it will be immediately utilized by other participants.
However, you will not be able to withdraw it back until free liquidity appears again in the protocol.
The wait for an exit can stretch over weeks or even longer. A partial exit is possible through borrowing other tokens, but completely withdrawing everything is not possible due to LTV restrictions.
📉 This is a typical High Risk case: everything seems 'reliable' on the surface, but exiting the protocol will be extremely difficult.
🧠 Conclusion:
When you see a high APY in lending, always check the liquidity, not just the yield.
Otherwise, you can get stuck in the protocol for a long time — without the ability to exit and access your funds.
