“Defi Protocols Are Expanding Into Tokenized Real-World Assets, With Crypto-Native Asset Managers Playing A Key Role in Capital Allocation and Governance, Access to A NEW REPORT.”, – WRITE: www.coindesk.com
While Defi’s Previous Bull Market Was Driven by Eye-Watering-Andubioses-Ields and Specialty Increase Institutional Participation, accounting to a wednesday report by the Analytics FIRM Artemis and on -chain Yield Platform Vaults.fyi.
The Total Value Locked (TVL) On Top Defi Lending Protocols – Including Aave, Eules, Spark and Morpho -Has Surged Past $ 50 Billion and Approaching $ 60 Billion, Growing 60% Over. This Growth Has Been Driven by Rapid Institutionalization and IncreASINGly Sophisticated Risk Management Tools.
“THESE Are Not Merely Yeld Platforms; they are evolving into modular Finular Financial Networks Undergoing Rapid Institutionalization,” The Authors Said.
Lending Deposits On Top Defi Protocols (Artemis)
The ‘defi mullet’One of the Key Trend Recently the Report Highlightd Is User-Facing Applications Quietly Embedding defi infrastructure in the Backet to Offer Yield or Loans. These Features Are Abstrakted Away from USERS Creating A More Seamless Experience, A Trend of the Often Called The “Defi Mullet:” Fintech Front-End, Defi Backet, The Report Said.
Coinbase USers, For Instance, Can Borrow Against their Bitcoin
Holdings Powered by Defi Lender Morpho’s Backet Infrastructure. More Than $ 300 Million in Loans have already originated via this integration as of this month, the report Pointed Out.
Bitget Wallet’s Integration with Lending Protocol Aave Offers A 5% Yield on USDC and USDT HOLDINGS ACROSS CHAINS WITHOUT LEAVING The Crypto Wallet App. Paypal is Also Doing Something Similar with Its Pyusd Stablecoin, Offering Yields Near 3.7% to Paypal and Venmo Wallet USERS, ALBEIT WITHOUT The DEFI ELEMENT.
The Report Said Crypto-Friendly Fintech FIRMS WITH LARGE User Bases, Such As Robinhood or Revolut, May Also Adpt this Strategy and Offer Services of Liken Likein Credit Like Defi Markets, Creating New Fee-Based Revenue Streams.
Tokenized rwas in defiIncreASINGly, Defi Protocols Are Intraducking Use Cases for Tokenized Versions of Traditional Instruments Such as US Treasuries and Credit Funds, ALSO KNOWN AS REAL-WORLD ASETS.
THESE TOKENIZED assets can serve as collateral, Earn Yield Directly or Be Bundled Into More Complex Strategies.
Read More: Tokenized Apollo Credit Fund Makes Defi Debut with Levered-Yeld Strategy by Securitize, Gauntlet
Tokenization of Investment Strategies is Also Become Popular. PENDLE, A PROTOCOL THAT LETS USERS SPLIT YIELD STREAMS from PRINCIPAL, NOW Manage Over $ 4 Billion in Total Value Locked, Much of It in Tokenized Stablecoin Yield Products.
Meanwhile, Ethena’s Susde and Similar Yield-Bearing Tokens Have Introduced Products That Deliver Returns Above 8% Through Strategies Burden for the end user.
Rise of on-Chain Asset ManagersA less Visible But Critical Trend Highlighted in the Report Is The Rise of Crypto-Native Asset Managers. FIRMS LIKE GAUNTLET, RE7 AND STEAKHOUSE FINANCAL ALLOLOCATE CAPITAL Across DEFI ECOSYSTEMS USING PROFESSIONALLY Managed Strategies, Resembling The Role of Traditional Asset Managers.
These Players Are Deeply Embedded in Defi Protocol Governance, Fine-Tune Risk Parameters and Deploy Capital Across A Range of Structure Markets.
The Report Noted that Sector’s Capital Under Management Has Grown Fourfold Since January – From $ 1 Billion to Over $ 4 Billion.
Read More: Crypto for Advisors: Defi Yields, The Revival
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