@p874563q

Do early adopters face more yield volatility than later entrants? Early adopters face radically higher yield volatility. In the initial phase, APY is driven by high, inflationary token emissions from bootstrapping AVSes and a small, volatile total value locked (TVL). Yields can swing from astronomically high to near zero very quickly as emission schedules change and market sentiment shifts. Later entrants join a more mature ecosystem. The TVL is larger, damping volatility; reward models have shifted from pure inflation to more sustainable fee-sharing; and the risks of different AVSes are better understood. While later entrants may capture a lower average APY, they benefit from a more stable and predictable yield environment, having missed the initial period of explosive and chaotic experimentation.

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