Overview: The Problem

The problem with yield protocols such as Daas, Naas, etc. is one and the same: it's a closed system without any value generation. If you are playing a game where the tokens simply get cycled inside the system, the collapse is inevitable.

Similarly, when the value comes from the selling of those tokens in order to invest in other protocols, you either end up with a treasury that's too small compared to market cap, or worse, a protocol with so much forced selling that the price tanks and never recovers.