Sarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.
In today’s Crypto for Advisors newsletter, Crews Enochs, from Index Coop discusses the revival of of DeFi Yield and how it will be organic this time. DJ Windle answers questions about DeFi investing in Ask an Expert.In past cycles, yields in DeFi have largely been paid in novel, valueless and inflationary governance tokens. The result was initial bursts of unsustainable activity on new protocols and gains for early entrants. Everyone else was left holding the bag.
Up until early 2023, liquid staking yield was the benchmark rate for digital assets and the only organic yield left, as borrowing demand dried up during the bear market. While the liquid staking rates exceeded federal funds rate for much of 2022, rate hikes last year rendered liquid staking unattractive. Nevertheless, liquid staking remained a solid organic option for digital asset users who didn’t want to move their capital off-chain.digital asset yields began to climb.
For the most part, stablecoin and ETH yields are sourced from interest paid to lenders by overcollateralized borrowers. Stablecoins in particular are the most liquid and in-demand asset in the digital asset ecosystem, and users are borrowing them to lever up exposure to their favorite asset. Users who are uncomfortable lending against exotic new assets, like Ethena’s sUSDe or liquid restaking tokens,
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto for Advisors: The Professionalization of CryptoSarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.
Read more »
DeFi Project Plans to Open Up a Huge Market With its New DeFi Debit CardCrypto Blog
Read more »
Crypto for Advisors: Digital Asset Custody’s FutureSarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.
Read more »
Crypto for Advisors: Bitcoin’s Supply ReductionSarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.
Read more »
Crypto for Advisors: Are ETH ETFs Coming?Sarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.
Read more »
FCA crypto regulators will take the best from TradFi and DeFi, says execU.K. crypto regulators are trying to combine traditional finance with an understanding of the market's nuances, FCA's Matthew Long said.
Read more »