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
I know having a lot of altcoins with a committed PoS reward of about 30-40% / year is very common. with Tezos on the list having the most modest profit margin, that's about 6%. The smaller the altcoins, the more profitable they are because they are not too confident in the coin they are developing. This means that they only pay you with the same coin that you participate in PoS, not USDT. Therefore, when the price falls sharply, they will not be responsible for you. To be honest, I think everyone should do PoS with the top coins, the risk will be lower but the returns will also be safer.