The video of Swop APY itself explains that only a fraction, less than 1% is pooled into APY.

The remainder of this xxx% yield is from staking and farming rewards.

Real APY backing is less than 1% and you can see exactly how much in the video based on collected fees, it's below $25 000 for the total Swop pool.

I would advice to dramatically decrease APY to less than 10% maybe same as waves 6% because this APY is not backed by anything.

I don't think Waves is using funds from deposits to pay investors, I don't see it as Ponzi.

It is simply hyperinflating supply which is what Masternodes did in 2018 and 1 year after every masternode was -99%.

So what happends here is extreme dilution if you invest your money into USDN, Swop etc.

In the stock world, this is usually from excessive company emissions to raise new money, they take a 10 million shares and pump another 5 million into market by selling it to investors to raise development funds. This drastically dilutes the market and makes every share less valuable which causes downwards pressure on price.

But stock market never had anything near xxx% annual dilution, which is also why Masternodes imploded in such short time and so dramatically  -99%.

So the take away is that you are buying toxic assets here, anything over 5-10% APY is toxic because it is unbacked and will dilute your investment to zero by hyperinflating supply.

I don't understand the logic with this creation how did waves expect to catch up to such extreme APY and back it with something real such as fees or other revenue sources?

This was impossible for the past thousands of years of finance, it did not suddenly become a reality this year.

Value investors should absolutely take a look at NFTs and follow investment in NFTs which are consistently selling such as Beeple. This is a very hard investment category and art collecting in a new frontier is even harder than normal art collecting. But atleast there is some material backing to the ROI. Early NFTs from 2017 will probably go up alot in value similar to Surrealism, pop art, Beat, Cubism movements.

Waves is very lucky, because there is one 2017 NFT token on waves.