i've been doing a lot of reading about DeFi's lately, but i can't seem to wrap my head around rewards and where do they come from? at first i thought that rewards are given just like in proof of work coins, like btc so basically, if one stake a coin, he'll be getting rewards for helping the network, meaning from the blockrewards and transactions fees.
but i then came across some new coins like Swipe, which i'm confident that it does not generate that much in transaction fees, and yet the rewards are high? the coins in question are: Tezos, matic network, cosmos, swipe and ethereum 2.0.
i would appreciate any explanation. thank you
Any high % yield without clear explanation on how it's achived is suspicious as hell, borderline scam.
And many new defi's today use people's greed, offering high %. Those can probably be classified as ponzi's.
But we will see what happens and the bubble deflates. The ones left standing are the ones with something behind it