Most people who have dealt with cryptocurrencies in any capacity over the last couple of years are well aware that there are many projects out there offering eye-popping annual percentage yields (APY) these days. 

In fact, many decentralized finance (DeFi) protocols that have been built using the proof-of-stake (PoS) consensus protocol offer ridiculous returns to their investors in return for them staking their native tokens.

However, like most deals that sound too good to be true, many of these offerings are out-and-out cash grab schemes — at least that’s what the vast majority of experts claim. For example, YieldZard, a project positioning itself as a DeFi innovation-focused company with an auto-staking protocol, claims to offer a fixed APY of 918,757% to its clients. In simple terms, if one were to invest $1,000 in the project, the returns accrued would be $9,187,570, a figure that, even to the average eye, would look shady, to say the least.

YieldZard is not the first such project, with the offering being a mere imitation of Titano, an early auto-staking token offering fast and high payouts.

Are such returns actually feasible?

To get a better idea of whether these seemingly ludicrous returns are actually feasible in the long run, Cointelegraph reached out to Kia Mosayeri, product manager at Balancer Labs — a DeFi automated market-making protocol using novel self-balancing weighted pools. In his view:

“Sophisticated investors will want to look for the source of the yield, its sustainability and capacity. A yield that is driven from sound economical value, such…


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