Would you trust a bank that promised a 7.4% APY savings account, or would you go "hmmmmmm..."?
> This is better than any bank in the universe.
"If it sounds too good to be true..."
> This is better than any bank in the universe.
"If it sounds too good to be true..."
Most of the defi world is a scam, however, stablecoin<->stablecoin liquidity pools are handling millions of dollars and paying the liquidity providers handsomely at 0.1%. It is then that you understand who exactly is making big money in this space :-)
I'm not saying there is no risk -- indeed, there is considerable risk and no FDIC insurance; BUT, the game is far more complex than looks on the surface.
Bernie Madoff's ponzi scheme survived for decades before it was revealed to be "too good to be true".
If those defi contracts collapse, your savings that got loaned out to them are gone. You're not getting that APR, and you're out the principal too.