Stablecoin Revolution: Challenging Risk-Free Rates With On-Chain Money Markets

Quick Summary:

DeFi’s base rate for lending stablecoins is a structural shift that challenges traditional finance by demonstrating the sustainability of high-yield, low-risk on-chain money markets, says Index Coop’s Crews Enochs.

At times, yields on major platforms like Morpho have reached 12-15% APY for USDC lending, significantly outpacing the 4-5% offered by U.S.Treasuries.

By offering sUSDe, Ethena allows DeFi participants to tap into profits generated from traders paying high funding rates to go long on major assets like ETH, BTC and SOL.

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Article Details

Author / Journalist: Crews Enochs

Category: Crypto

Markets: United StatesCuba

Topics: Interest Rates Opinion Stablecoins DeFi TradFi CoinDesk Indices

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-02-12 @ 16:35:25 (12 hours ago)

News Timezone: GMT -5:00

News Source URL: coindesk.com

Language: English

Article Length: 562 words

Reading Time: 4 minutes read

Sentences: 41 lines

Sentence Length: 14 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © CoinDesk

News ID: 26106224

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