Duncan Cock Foster

Cheap stabs flying around saying “DeFi is dead, yields are worse than in tradfi”. That’s a market cycle phenomenon, it happened three times before already... 😴 Why? So far, crypto yields have been differentiated due to a scarce number of onchain native activities: bull market -> funding rates up -> token incentives up (which are practically derived from the bull market going on). When those activities are low like right now, so are the yields. How to fix this? (1) work on improving and introducing new onchain-native yield sources (check this article for some ideas x.com/CharlieStLouis…). This will differentiate crypto activities. That could be core infra related economics (gas, storage, compute), more of the new financial activities (prediction markets which isn't just sports betting), etc. (2) while many projects are working on RWAs and introducing exogenous offchain yields to balance out times like the current one. The danger here is deploying too much into such assets and realizing that you are buying a worse, more expensive, and less protected asset replica vs the one you could have bought in tradfi directly. Here is a rabbithole that should ring a bell: x.com/lex_node/statu…. DeFi is not dead, DeFi is evolving. Both ways.