Gas Drag: The Silent Killer of DeFi Yields
Gas Drag: The Silent Killer of DeFi Yields! Everyone loves the look of a 200% APY flashing on a yield farm dashboard. It feels like free money just waiting to be harvested. But here’s the truth most farmers discover too late: that “200%” might not even be close to what you’re actually earning. Why? Two words: Gas Drag. Gas drag is the silent tax that eats into your yield every time you rebalance, compound, or migrate liquidity. Left unchecked, it can turn your dream APY into little more than a headline number. What Exactly Is Gas Drag? Think of gas drag as friction in your farming machine. Every time you interact with a smart contract — whether that’s harvesting rewards, compounding, or moving liquidity — you pay gas. On paper: Farm shows 200% APY You harvest $5 in rewards Gas costs $2 Net profit = $3 → You just lost 40% of your expected yield. Do that often enough, and your real APY starts to look more like 80% (or less). Why Some Chains Make It Worse Gas drag isn’t equal everywhere....