TradFi DeFi yield hunt could inject north of $30 trillion into decentralized markets
When the world wakes up to understand how yield works in decentralized markets, something great will happen!
SharpLink Gaming plans to deploy $200 million worth of Ether from its corporate treasury onto Consensys’ Linea network.
The company said the multi-year initiative will use Linea’s zkEVM layer-2 infrastructure to generate onchain yield and increase the efficiency of its ETH holdings. According to a Tuesday press release, the strategy aims to capture “highly competitive, differentiated, risk-adjusted ETH-denominated returns.”
SharpLink plans to generate yields from staking, restaking rewards earned by helping secure EigenCloud’s decentralized verification services (AVSs), and incentives from Linea and ether.fi — a decentralized liquid staking and restaking protocol. – Cointelegraph report
We've been discussing yield for quite some time now, from ETFs issuers pushing for ETF staking, down to the battle of banks over stablecoins offering yield, all of which indicates that major capital changes are on the way.
Traditional capital is going to be moving fast to farm DeFi yield. Most people thought that DeFi yield farming was dead, but that was mostly because when yield farming was mentioned, they mostly thought about scam projects at the peak the DeFi infinite money glitch narrative, but fundamentally, the most original forms of DeFi yield farming has been via native staking on decentralized blockchains.
Beyond this, of course, we have the LP farms, of which when the bets are on assets that have proven to be powering networks with upside potentials, proves to be smart investments for the long term.
Traditional businesses will be joining in to farm DeFi yield because when you understand that the whole world will be moving on-chain, and for the first time, it will be directly possible to invest in an economic system with zero central-party risks, you don't wait to be told to go all in.
Traditional yield markets such as government bonds, was valued at over $133 trillion in 2022, capturing less than 25% of that would put DeFi in position to control over $30 trillion of value.
Let's not forget that we have capital actively searching for the best dividend stocks. We also have capital looking for the best savings accounts. There's a reason the banks are so afraid of stablecoins having native yield, it's because it would cause a significant migration.
The reality is that, even with restrictions in place, for traditional stablecoin issuers, stablecoins will still have yields on-chain, especially decentralized stablecoins and besides this, non-stable assets, such as network governance tokens will also attract traditional capital because not only is yield offered, there's the potential upside that makes all capital commitment a smart play into what the future layer for global economies is.
Posted Using INLEO