4min chapter

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The Secret Weapon of DeFi 2.0 | Zeus from Olympus DAO

Bankless

CHAPTER

Is Liquidity Renting Your House?

Yield farm is like, another way to say that is like just allowing people to sell it a great. Zeus here calls that like renting liquidity, because protocols are issuing a certain amount of their token per time in order to incentivize liquidity to come. And so as soon as you stop insentivising that liquidity come, the liquidity goes away. So we are renting liquidity in in ldifi one point o with liquidity mining. But it's not actually rewarding believers. The depositor who's earning those rewards doesn't actually have take any exposure to the asset that they're earning. It flips its model. That's why zeus here says, it flips the model on its head

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