APY (Annual Percentage Yield)

The article outlines strict risk management rules for DeFi yield farming in 2026, including limiting DeFi exposure to 15-20% of a portfolio, capping single protocol allocations at 5%, prioritizing audited protocols with high TVL and proven track records, avoiding unsustainable APYs above 30-40%, and conducting regular manual reviews. The author emphasizes a conservative approach to mitigate risks like smart contract vulnerabilities and impermanent loss, which has reduced drawdowns while maintaining decent yields.