Many Web3 applications offer returns (yield) on your deposited tokens. While some yield is generated by real utility, high-yield platforms often operate as unsustainable Ponzi schemes.
### Sustainable Yield Sources
1. **Network Consensus (Staking):** Locking tokens (like ETH) to secure a Proof-of-Stake network. You earn a share of new issuance and transaction fees. (Typically 3% to 6% annually).
2. **Lending Markets:** Supplying stablecoins to decentralized pools (like Aave). Borrowers pay interest to access these funds, which is paid back to you. (Typically 2% to 15% depending on demand).
### Unsustainable Yield Traps (Ponzi Mechanics)
If a platform promises fixed returns of 1% daily, 100%+ APY, or requires recruiting users to unlock payouts, it is a scam.
* **The Trap:** They use tokens deposited by new users to pay high yields to older users.
* **The Exit:** Once new deposits slow down, the contract creators drain the remaining liquidity pool and vanish (a rug pull).