Examining DeFi funding over the past three months

Decentralized Finance (DeFi) is largely an incentive-based system. As new projects pop up and dole up their tokens to liquidity providers, users flock between different applications to chase the highest yield opportunities. 

In most cases, these incentives that provided users with hundreds to thousands of APY were not sustainable. As incentives and yield opportunities began to dry up, so did the mini “DeFi bubble” that began in June and peaked in September.