Crypto investors who once turned to decentralized finance for easy passive income through juicy yields are running into a new reality: the numbers no longer add up.

DeFi, or onchain finance, is essentially conducting banking transactions on a blockchain, cutting out middlemen like banks and letting investors borrow, lend, and trade in minutes. Back in 2021-2022 (and even through the subsequent crypto winter), DeFi’s returns were more than promising; rates reached 20% on protocols like Aave and thousands of percent on other emerging protocols, which would justify parking some cash for high interest rates, albeit with a higher risk of hacks, exploits and quick liquidations.

Read more: What is DeFi?

Fast forward to 2026, Aave, the largest…