@tabclapham

Liquidity mining yields require sustainability assessment. APYs often reflect token incentives rather than organic fees. An evaluation framework tracks incentive duration, emission rates, and protocol revenue. If rewards exceed sustainable fee generation, exits must be triggered before incentive decay. Early warning signals include declining TVL, rising sell pressure on reward tokens, and governance changes. Defining exit rules tied to APY thresholds or emission cliffs ensures disciplined de-risking. Without such rules, returns can collapse overnight, eroding capital instead of compounding it.

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