Crypto investors still want 20% stablecoin yields with zero risk. Has yield farming distorted expectations?

Some crypto investors are still chasing a combination that sounds almost too good to be true: 20% annual returns on stablecoins, zero risk, and instant access to their money.
According to comments attributed to Bitwise's Yannimoto during LONGITUDE, some capital allocators continue to expect these conditions despite the risks involved in generating high yields.
The problem may trace back to the era of token farming, when protocols offered aggressive rewards to attract liquidity and users became accustomed to double-digit APYs.
But those returns often depended on token incentives rather than sustainable economic activity.
Once incentives disappeared, yields could collapse. And even stablecoin strategies carry risks involving smart contracts, counterparties, liquidity, and potential depegging.
For perspective, Bitwise's own RWA-backed stablecoin lending products have targeted roughly 5–6% variable APY, far below the 20% some investors reportedly expect.
The uncomfortable reality is that high returns, low risk, and instant liquidity rarely come together without trade-offs.
Perhaps the biggest legacy of the yield-farming boom wasn't the money investors earned, but the expectations it left behind.
Source: LONGITUDE, Bitwise