Recently, I was chatting with a few friends with traditional asset management backgrounds, and they raised a common question: "Where do your DeFi yields come from? Isn't it just a game of pass-the-buck?" This question is quite interesting, so I explained it to them using the approach of the Walrus protocol.

Simply put, the sources of DeFi yields come from two main areas. One comes from the inherent "inefficient gaps" in the market itself—such as interest rate differences between protocols, timing mismatches in incentive releases, and liquidity imbalances across chains. These opportunities are scattered and individual investors simply can't capture them all. The other comes from genuine compensation for risk-taking and providing liquidity—real value exchange.

What makes the Walrus protocol awesome? It uses algorithms and automated systems to systematically seize these dispersed opportunities at scale, while keeping risks within set boundaries. It’s not an infinite money-printing machine, but more like a precise "yield harvesting machine." It transforms the market's inherent volatility and price differences—things that ordinary people find hard to catch—into stable cash flow.

This might be the true value of DeFi: not creating wealth out of thin air, but leveraging technology and scale to efficiently harvest the opportunities that exist in the market but are scattered.