Universal DeFi Yield Framework: Risk First
Universal template MediumExplains where returns from staking, lending, liquidity provision, and incentives come from and which risks the user absorbs.
Use these DeFi Yield prompts to turn a loosely defined finance task into a clearer, copy-ready AI workflow.
Explains where returns from staking, lending, liquidity provision, and incentives come from and which risks the user absorbs.
Distinguishes rewards funded by fees or economic activity from issuance that dilutes the token holder's relative share.
Maps smart-contract, oracle, liquidation, rate, governance, collateral, liquidity, and administrative-key risks in lending protocols.
Explains how fees and incentives compare with impermanent loss, token-price risk, gas costs, and protocol risk.
Breaks a high APY into fees, token issuance, compounding, leverage, and liquidity risk to identify fragile incentives.
Creates a cautious sequence for domains, networks, contracts, transaction simulation, approvals, test transactions, and revocation.
Uses five questions to distinguish activity-based revenue, temporary subsidies, token inflation, leverage, and uncertain returns.
Compares return sources, complexity, time, custody, liquidity, smart contracts, taxes, and sustainability.
Ranks risks by probability, impact, and recoverability without confusing limited historical losses with safety.
Designs a limited, reviewable DeFi exposure that prioritizes understanding, liquidity, operational security, and capital preservation.
Includes subcategory info, prompt IDs, descriptions, difficulty, and prompt text.
A quoted DeFi yield is not a single risk-free return. Break it into fees, incentives, leverage, token emissions, and price exposure, then test whether each component can persist and be exited.