If am looking for a passive income source, staking on defi project is what I would never trust my capital with. I may not have had the disappointing experienced before, but I have seen people talking about the disadvantage and disappointment that they have had because they staked their token with high APY but the token value was worthless and despite that they had billions of the token from rewards on the staking they did not still sell it at a good value which made the whole process a waste of time.
Before condemning a project or sector, its advisable to make your own research and not depend on the trends from people because the market is filled with lies. We should never jump into conclusions, I'm not saying we should take higher risks but mandatory to invest more of time investing in the market. We should be able to differentiate between our ups and lows in the system. Experience they say is the best teacher, we can be demanding for straight goals but the market is always bent on giving us comprising stats not suitable for our ends.
Of course, we will doe our own research, however, we have heard a lot of bad news already and when we see that some project is offering high yields, then chances are this are going to be a scam.
I guess the OP is showing as where the yield comes from, or where the money is coming from that projects can afford to give a good yield, not that high, but at least you know that it's about the normal range.
Although for me, I'm not into yield or I didn't jump on this hype early on.