DeFi yield compression is real. But capital is not leaving in one clean move If lower yields were enough to break the whole space, TVL would be rolling over everywhere. That is not what the structure shows. From peak TVL, the damage is deep in some names. Aave v3 is still down about 43.8%. Sky Lending is down 23.7%. Ethena USDe remains the weakest, down roughly 60.7%. Morpho looks different. Its drawdown is closer to 12.3%. The right edge matters more. Over the last 7 days, Aave is up about 5.7% and Morpho about 4.6%. Sky is down 3.2%. Ethena is still slightly negative near 0.9%. The yield premium is fading. Capital is getting more selective 🧸 DYOR
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