Everything you described about LPs, TVL, and token value; you are just describing the mechanics of the ponzi scheme, not describing the way in which it isn't a ponzi scheme.

If you are getting "interest" over 20%, what you are doing is extracting that money (which isn't real until you turn it into fiat, btw) from the people in the future who lose money when the scheme inevitably crashes; they are transferring their future losses backward in time to you in the present.

That's fine as far as it goes, if you're aware of what's going on, ethically comfortable with it, and make sure to get out of the scheme early enough to not yourself be one of the people left without a chair when the music stops.

But from your comment, I think it seems like you aren't one of the people cynically taking advantage of the scheme, in which case, you are actually one of the marks.

It is simply not possible for a scheme that is above board to pay over 4x the prevailing global interest rate, without significant risk.