A lot to learn from what happened with @StreamDefi today, a massive hit for DeFi users.

I discovered Stream back in April. It was offering one of the highest stablecoin yields at the time (around 15%+ APY, if I recall correctly).

It looked promising, so I did some digging:

> Law (the founder)

His tweets seemed legit imo. He shared thoughtful takes on DeFi yield and had a pinned video showing how he turned 5k into multiple seven figures.

Looked like he knew what he was doing. That credibility made Stream DeFi worth a deeper dive.

> Stream official account

I noticed a small red flag as the official X account was pretty inactive.

Despite that, the protocol reached $60M+ TVL. It made me wonder if a few large whales were backing it, but I couldn’t find any clear conclusion.

> Source of yield

After seeing its advertised 15%+ APY on USDC and 8% on ETH, I checked Stream’s multisig wallet to understand the yield source.

That’s where I decided not to deposit.

Some funds were in high-leverage looping positions. A few allocations made sense, but most didn’t.

So instead, I diversified my stables across other PTs.

Farming in DeFi always carries hidden risks. Diversify across multiple protocols and always understand where the yield is coming from.

Will need to be more careful on lending to risk curators on Morpho/Euler as assets are allocated to several smaller assets from new projects.