Very wise views here. I've generally ignored traditional finance, so I can't offer any balanced thoughts as you have, but get what you're saying.

Much of the inflationary crypto genre carries on as such for a planned number of years. Their "selling point" is that the inflation slows on a set schedule over time, and that it may even convert to a burn model later on. That's often just white paper token issuance/distribution pie chart stuff, as much is a money grab in my eyes. It's competitive out there and projects need to sell opportunity to attract liquidity. Usually, the returns on staking or liquidity providing decline as more capital comes for their slice of the pie, but this demand seems to chew up selling pressure by earlier adopters or those generally farming their yield.

Whether this is the case for some or all, a strong APR is all that over-enthusiastic crypto investors need to hear to feel like there's enough juice to squeeze for a while before moving on to the next one. I can't blame them though because it's better than the last bull run where these options weren't as available -- so it was just buying, holding, or trading asset pairs - versus more incentive to hold for the yield today. Ultimately, there's a lot more locked up now than before, so I don't mind this so much. Some project are merely a means to an end, while there are good ones to stick with.

I suppose the risk is super high, so the rewards match, whether the math behind it makes sense or not.