AERO, I watched this Vault for a while today.
In the end, I didn’t really remember the APY. Instead, I kept thinking about one thing:
Where did the extra money come from—who paid it?
@TermMax is actually quite interesting.
When stablecoins are waiting for opportunities, they don’t necessarily have to just sit there. You can first go earn some base yield in markets like Morpho.
Then the Put portion will also pay you a premium.
At first glance, it looks like “two streams of yield.”
But that second chunk of money isn’t free.
When you collect the Put premium, it’s effectively you agreeing to another condition:
If the expiration trigger happens, you might have to take AERO at the заранее agreed price.
Once you break it down like that, I’m actually less inclined to stare at the “total APY.”
The first part is more like: if the money isn’t being used yet, don’t let it sit idle.
The second part is: someone else pays so that you take over part of the price risk.
Both pieces of money look like “yield,” but they’re not coming from the same place at all.
So, in the future, when I see products like this, I’ll probably ask first:
Whose money am I earning?
Then I’ll ask:
What risk am I taking over for someone else?
After you figure those two questions out, that APY starts to feel much more trustworthy.
#TermMax
In the end, I didn’t really remember the APY. Instead, I kept thinking about one thing:
Where did the extra money come from—who paid it?
@TermMax is actually quite interesting.
When stablecoins are waiting for opportunities, they don’t necessarily have to just sit there. You can first go earn some base yield in markets like Morpho.
Then the Put portion will also pay you a premium.
At first glance, it looks like “two streams of yield.”
But that second chunk of money isn’t free.
When you collect the Put premium, it’s effectively you agreeing to another condition:
If the expiration trigger happens, you might have to take AERO at the заранее agreed price.
Once you break it down like that, I’m actually less inclined to stare at the “total APY.”
The first part is more like: if the money isn’t being used yet, don’t let it sit idle.
The second part is: someone else pays so that you take over part of the price risk.
Both pieces of money look like “yield,” but they’re not coming from the same place at all.
So, in the future, when I see products like this, I’ll probably ask first:
Whose money am I earning?
Then I’ll ask:
What risk am I taking over for someone else?
After you figure those two questions out, that APY starts to feel much more trustworthy.
#TermMax