Why is NIM different from all other defi protocols/programs?
We have touched on the difference in this newsletter: NIM’s Passive Income differs from the rest.
In short: NIM is sustainable due to its unique business model.

“If you don’t know where the yield comes from, then you are the yield.”
We see it all the time. You get paid to deposit your crypto in return for crazy yield — without telling you how it’s done. In 99% of the cases – you are the yield.
That means “they” are using your fund to pay off older investors – and that always end badly for you (aka a Ponzi Scheme)

Other methods to pay you are not straight-up Ponzi schemes (barely).
• Token emissions: The protocols’ token is inflationary, so they create new tokens and pay you with them. This will only work until demand stops. The token goes to zero as more and more tokens hit the market.
• Straight “Digital Casino” mode ON: Using your funds to gamble in the defi market for gains to pay you that significant interest. This is where the majority of bankruptcy filings stem from.
Many started to refer to these as ‘fake yields’

NB! Defi is not fake. The majority of yields are…
Defi protocols like Aave and Compound have yields sitting around 2-3%, and even that has a risk as there is no KYC to assess the creditworthiness of the average borrower.
Anchor protocol in the Terra/Luna ecosystem offers 20% APR. At one point, Anchor contained 80% of the liquidity of the whole Terra ecosystem, and we all know how that ended.
Retail banks were offering a 1–2% APR for savings accounts at best, with interest rates at a net 0%. Anybody could foresee how offering a “guaranteed” 20% APR was insanely absurd.

Welcome to sustainable defi
NIM has advocated it for quite some time, but I’ll be happy to repeat it
Defi is ONLY sustainable by handing a part of the revenue (just like an ordinary public company would do with dividends). The profits are derived from an actual, sustainable business model.
NIM’s definition of defi is utilizing the new technology to make more efficient business models and increase profitability.

The only way is profitability, which is easier with defi’s reduced costs.