[TimJRobinson]

Most of the high yields come day traders paying trading fees. For example on sushiswap on Polygon there are pools of ETH/USDC that people trade back and forth with trying to play the market. Every time they do a trade they pay a 0.3% fee. If you provide liquidity to these pools there is so much trading going on that the returns are currently 20% - 30% per year.

You can earn even more if you provide liquidity for riskier assets that have a higher chance of dropping in value.

The risks are impermanent loss and that the token you're providing liquidity for drops in value.

Yearn is a decentralized automated tool to find the platform that is giving the best returns and moving all the money they manage into it.

All of this is open source and on the blockchain.

[adam_arthur]

But the fees are taken from people speculating in crypto to make money.

Even though these are "fees" or "loans", the purpose is strictly speculation. It's not driven by intrinsic value, but people attempting to make money via speculation.

If I take a loan for a house, I can live in it. That's intrinsic value.

So the system only works to the extent that people are willing to pay for tokens without intrinsic value. Does not seem sustainable to me

[TimJRobinson]

I don't particularly care why they're trying to trade the markets, or if they're providing intrinsic value, but I'm happy to invest money and collect 20-30% dividends from them.

If everyone suddenly decides they don't want to trade any more, then I'll find somewhere else to invest my money.