Value can’t come out of thin air. After a fall from its peak value of over $250 billion, speculations around the survival of DeFi are not looking too good.
Equally telling is the fact that on-chain loans tend to remain on-chain within the largely siloed blockchain ecosystem. An on-chain protocol can only lend you an on-chain token, and as we know, on-chain assets are not very integrated into the real-world economy. So, whether you are going after an arbitrage opportunity or staking your loan into another yield protocol, your loan — as opposed to traditional finance lending — creates little in terms of real-world value.
The time of uninhibited yields shooting for the moon may be over, but there are plenty of interest-generating real-world activities waiting to be brought on-chain. All of them offer more familiar business models, allowing projects to up their risk management gain while also offering investors returns based on actual tangible outcomes.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Now Accepted by Two Ukrainian Tech Giants: ReportCrypto adoption in Ukraine expands across 100 stores owned by two of Ukraine’s largest tech retailers.
Read more »
FDIC sends cease and desist letters to FTX US, four others over insurance statementsThe FDIC sent letters to five crypto players on Friday demanding they cease and desist from making what the agency called 'misleading' statements about federal insurance on crypto deposits.
Read more »
NFL Team Houston Texans Now Accept Bitcoin Payments for Game SuitesThe development is part of an exclusive partnership with crypto wallet provider BitWallet.
Read more »
What Ethereum’s Big ‘Merge’ Means in Crypto LandThe crypto platform is prepping for a major systems overhaul that could, among other things, make it more energy efficient.
Read more »