Bro, you have definitely seen a yield like this somewhere — "BTC staking 30% APY!" — and your heart skipped a beat. That is way higher than putting money in a bank.
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Do not rush to pull out your wallet. That number is probably that high because points are included. Let me answer you directly today: Do points count as real returns? Strictly speaking, no. They are more like a "redemption ticket" given to you by the project team, and whether that ticket can turn into real money is another story.
First understand: in that tempting yield, what is "real money" and what is "points"
The liquid staking (LST) products on the market today usually give you a packaged "return" that includes three parts:
BTC-denominated base yield: This is the real reward you get from staking BTC through protocols like Babylon. The current base rate is about 0.03%. You read that right, 0.03%, because Babylon rewards are paid in BABY tokens, not BTC.
Extra DeFi yield: You take the LST tokens you received from staking (like LBTC or SolvBTC) and deposit them into platforms like Pendle to earn LP fees or strategy returns. This part of the APY looks much higher, like 22%-31%. But it comes from liquidity mining, so the yield is not fixed and is heavily affected by market conditions. It is not as stable as traditional wealth management.
Points or airdrop expectations: This is the part most easily mistaken for returns. You participated in staking, so the project team records some "points" for you and promises you can exchange them for project tokens later, like Babylon points. So in essence, it is an expectation about the future.
So the "high yield" you see is roughly 0.03% native yield + DeFi yield + points expectations.
Step 1: First strip "points" out of your return calculation
[What to do]: Look at "points" as a separate item in your return expectations.
[How to do it]: Open a calculator and only work out two accounts:
The "real money" part: Only the assets you directly earn through staking or DeFi strategies that you can sell at any time, like LP fees. For BTC LSTs, the native yield is extremely low and may not even cover your gas fees.
The "redemption ticket" part: That is points. Their value comes from project tokens that may be issued in the future. But the project team has clearly said that points cannot currently be redeemed or transferred, and their final value is decided by the project team.
[Completion standard]: You can clearly say how much "real money" your BTC is actually earning each month after removing all the "future" and "expected" parts.
Step 2: Distinguish between "real yield" and "points value"
[What to do]: Understand the fundamental difference between "points" and "real yield".
[How to do it]: Focus on these differences:
| Dimension | Real yield (like LP fees) | Points or airdrops |
|---|---|---|
| Current value | Yes, already reflected in your wallet balance or withdrawable assets | No, just a number or record in an account |
| Certainty | High, you know exactly where it comes from | Low, the project team may adjust points rules or distribution conditions at any time |
| Liquidity | High, you can sell at any time for stablecoins or BTC | None, cannot be traded before tokens are issued |
Common reason for failure: Many people assume "points = tokens = money", but there is a huge gap between the two. What you get is points. Whether the project team will issue tokens in the future, how many they will issue, and at what price, are all unknown.
Step 3: Do the real math — how much can retail investors actually earn
[What to do]: Put the "real money" you might earn together with gas fees and see if it is worth it.
[How to do it]: Take Babylon base staking as an example:
Yield: Stake 1 BTC for one year. The base yield is about 0.03%. At $60,000 per BTC, that is about $18.
Cost: BTC network gas fees. You pay at least once for locking and once for unlocking, totaling roughly $5 to $10.
Net yield: After deducting costs, you may be left with less than $10. This does not even include potential losses from BTC price fluctuations.
[Completion standard]: You can calculate this with a simple formula: Your net yield is roughly (staking amount × 0.03% annualized) - (entry gas + exit gas)
Risk reminder: The real risk is opportunity cost. Your BTC cannot be traded during the staking period. Once the price swings violently, there is nothing you can do. To earn that less than 0.03% yield, you might miss a multiple-times price increase, or watch helplessly as it drops.
FAQ
Q: Why do some platforms show 30% annualized yield?A: That is usually the sum of "BTC-denominated base yield + extra DeFi yield + points expectations". The truly stable, BTC-denominated portion is extremely small. Most of it comes from highly volatile DeFi strategies and future points expectations.
Q: Should I completely ignore points then?A: Not ignore them, but do not treat them as "guaranteed returns". You can view them as a potential "extra bonus", but when calculating your actual return rate, only count what has already landed in your pocket. Some people have indeed made money from airdrops in the past, but that is more like a "lottery" than a "salary".
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Next step
Now open the LST or staking platform you are using and read its product description carefully. Separate "points" from "real yield", and recalculate your annualized return using the "real yield only" method. After doing the math, ask yourself: is it worth taking on BTC lockup, protocol risk, and points uncertainty for this return?
