DeFi gold products are failing to meet investor expectations, with yields averaging under 1%, compared to 3%-5% in traditional finance. Many DeFi protocols rely on token printing rather than generating real yield, creating a Ponzi-like structure that redistributes value through inflation. When the token price drops, yields often disappear, prompting a cycle of inflated deposits and crashing returns. Gold investors are forced into complex structures, risking impermanent loss while barely exceeding stablecoin yields. The lack of infrastructure limits DeFi's ability to replicate traditional strategies, leaving investors with diminished returns. However, new protocols emerging focus on market-neutral arbitrage strategies, enabling real yield capture and democratizing access to institutional-grade returns. By simplifying products and eliminating forced diversification, these protocols may finally deliver on DeFi's promise. The potential for true adoption rests on producing real yields that meet investor demand, particularly as traditional finance faces regulatory pressures and asset diversification needs.

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