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Most DeFi projects are in lending area that is very unsustainable and risky. From DeFi 1.0 to DeFi 2.0, altcoin projects have good growths and attract big capital from investors who want to stake their coins, tokens and earn interests from DeFi platforms.
After two or three years, impermanent losses are worse and who bought those tokens in 2021 bull market, maintained to stake their tokens so far surely are living with fear and small hope to get their initial capital back. Those tokens drop a lot in value from UNI (Uniswap) to CAKE (Pancakeswap) and other smaller DeFi platforms, other DEXs' tokens.
I agree that Impermanent loss was a flawed idea since I experienced it first-hand however, even without impermanent loss in the picture, most of the tokens (DeFi and non-Defi) have all gone that significantly in value due to the bear market.
A lot of the DeFi concepts available today are all experimental and will take time to mature. These projects are building financial products in a decentralized context so a lot of things have gone wrong and could still go wrong.