The protocol emits tokens to whoever stakes an lp-token or deposits into a market. It works: liquidity arrives within hours of a competitive rate appearing, because the capital chasing these programs is professional and fast.
It also leaves as fast. Emissions dilute holders to rent deposits that have no loyalty, so tvl falls the moment rewards taper or a better rate appears elsewhere. Whether the exercise was worth it depends entirely on whether the rented users left behind durable fee revenue.
For the depositor, the reward token is the risk. A 200% APR paid in a token that halves is not 200%, and if everyone farming is also selling, the token's chart is the program's exit queue. Compare against real-yield paid in assets you would hold anyway.
Related: yield-farming, token-emissions, real-yield, tvl