# kaal:claim:5454054-016

**Claim.** LER scalability is limited by three identified risks: yield compression from rising interest rates, delays in the creation of binding regulatory safe harbors, and divergent national implementations of frameworks such as MiCA.

**Type.** failure  **Support.** argued

**Source quote.**

> Risks that have the potential to limit LER scalability include yield compression from rising interest rates, as well as delays in the creation of binding regulatory safe harbors, and global variations under frameworks like the EU's MiCA.

**From.** Wulf A. Kaal, *Liquid Equity Rewards* (2025), Market Opportunity for LER, page 17

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

**Verify.** sha256 of source PDF `9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards.pdf

**Failure mode.** yield compression and safe harbor delay  (family: regulatory-lag)

**Topics.** defi, risk-and-incentives

**Keywords.** yield-compression, regulatory-delay, mica, scalability-risk

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