Eth lending rates on Aave/Compound have remained < 1% for literally years. most returns in DeFi are dollar-denominated. the sustainable ones don’t seem to move much outside the 2-6% APY range (except during bull markets where people will pay a premium to leverage their Eth/BTC — but we’re no longer in a bull market). the 20% APY dollar-denominated yields have shown themselves to largely be unsustainable (e.g. UST). in an environment where the sustainable DeFi yields no longer vastly outcompete bonds/treasuries, why would you be bullish on DeFi?
follow-up: if you’re using DeFi today, which platforms are you using which i’m likely to be overlooking when i make these claims?
I don’t think that looking at the lending rates is the way to judge the value of ETH. What I consider valuable are all the things that could potentially be built on top of the ETH network. This is a very good post talking about it:
Eth lending rates on Aave/Compound have remained < 1% for literally years. most returns in DeFi are dollar-denominated. the sustainable ones don’t seem to move much outside the 2-6% APY range (except during bull markets where people will pay a premium to leverage their Eth/BTC — but we’re no longer in a bull market). the 20% APY dollar-denominated yields have shown themselves to largely be unsustainable (e.g. UST). in an environment where the sustainable DeFi yields no longer vastly outcompete bonds/treasuries, why would you be bullish on DeFi?
follow-up: if you’re using DeFi today, which platforms are you using which i’m likely to be overlooking when i make these claims?
I don’t think that looking at the lending rates is the way to judge the value of ETH. What I consider valuable are all the things that could potentially be built on top of the ETH network. This is a very good post talking about it:
https://www.lesswrong.com/posts/nMNi86hgNjaNnh8iu/a-whirlwind-tour-of-ethereum-finance