DeFi gold products currently underperform compared to traditional finance, yielding under 1% while traditional assets generate 3%-5%. Many DeFi protocols rely on token printing rather than real income, often leading to unsustainable yields that crash when token prices drop. The complexity of current DeFi structures forces investors into less profitable asset pairs, often resulting in impermanent loss during market rallies. Unlike traditional finance, which captures market inefficiencies, DeFi lacks the necessary infrastructure to replicate successful strategies. New protocols are emerging, focusing on market-neutral arbitrage strategies that can generate real yields by capturing contango spreads in gold investments. These protocols aim to provide pure gold exposure with reduced complexity, allowing smaller investors to access sophisticated strategies previously available only to institutional players. Overall, the gold DeFi market is maturing, and its success may hinge on delivering genuine value creation over mere token emissions, aligning with investor demands for transparency and better returns.

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