# Problems

1. In DeFi 1.0:\
   Despite the endless opportunities for investors to generate yield, its liquidity mining model is parasitic. Users are always looking for higher APY%, exiting the protocol anytime leading to a huge price drop. 
2. In DeFi 2.0: 

   Many OHM forks rely heavily on the protocol’s native token price. The issue is that when the market is in a bull market, it creates a very positive feedback loop. However, once the market becomes negative which happens quite often (often outside of the protocol's control due to macro reasons), it has a negative price impact on the token and creates a negative feedback loop, that is absolutely inevitable. It cascades into self-sustaining selling pressure from falling bond sales and staking APY. 
3. Treasury is not generating sufficient yield for most DAO tokens. The protocols need sustainable incentives for the treasury to grow in the long term.