Stablecoin yield isn't just about that final APY number.
Same reward, completely different rules: issuer-paid interest vs exchange incentives vs DeFi protocol yield farming. These are NOT the same mechanism.
The US GENIUS Act just put a spotlight on the line between issuers and trading platforms. Don't translate "issuer restrictions" into "all platform rewards banned." And don't assume all yield products got regulatory approval either.
Break it down into 3 questions:
1. Who's paying?
2. Where does the yield come from? Who takes the risk?
3. What rights do users actually get? Any redemption, liquidity, or credit constraints?
APY is the output, not the risk disclosure.
In this market, similar-looking products can have wildly different risk profiles. Figure out where the money comes from first, then talk about how much yield you're getting.
Same reward, completely different rules: issuer-paid interest vs exchange incentives vs DeFi protocol yield farming. These are NOT the same mechanism.
The US GENIUS Act just put a spotlight on the line between issuers and trading platforms. Don't translate "issuer restrictions" into "all platform rewards banned." And don't assume all yield products got regulatory approval either.
Break it down into 3 questions:
1. Who's paying?
2. Where does the yield come from? Who takes the risk?
3. What rights do users actually get? Any redemption, liquidity, or credit constraints?
APY is the output, not the risk disclosure.
In this market, similar-looking products can have wildly different risk profiles. Figure out where the money comes from first, then talk about how much yield you're getting.