Meet @cyrille_briere, Contributor at @protocol_fx, on how institutions can access real DeFi yields.
Current yields on T-Bills are 3.86%, while US inflation stands at 2.96%.
This means institutions providing liquidity on T-Bills earn roughly 1% after adjusting for inflation 🧵👇
Meanwhile, yields on stablecoins can reach up to 12.49%.
You might wonder why there’s such a massive difference between stablecoin yields and T-Bills.
@cyrille_briere explains that stablecoins have higher yields due to the trustless paradigm in crypto, whereas traditional finance still relies on a trust-based system.
Despite higher returns in crypto, institutions face several challenges:
1. Wallet custody
2. Smart contract, collateral, oracle, peg, and liquidity risks
3. Reporting and transparency
Let’s take a look at @protocol_fx’s DeFi strategy:
1. Powered by USDC and fxUSD and is fully onchain.
2. 100% organic & sustainable yield
3. Lower risk and better rewards
This makes the strategy:
→ Transparent and easy to report
→ Backed by Lido stETH and WBTC
→ Over-collateralised
→ Designed for a reliable peg
→ Audited by OpenZeppelin, Trail of Bits, and Secbit
With @protocol_fx’s stablecoin DeFi strategy, they:
→ Grew TVL by $100M
→ Maintained a stable APY of 12.7%
This strategy is based on @protocol_fx active users and how much volume they bring
Increase in fees generated by the protocol → Increase in TVL → Increase in yields
@protocol_fx has two core revenue streams:
→ Stablecoin yield generation
→ Leverage products
Some advantages of using leveraged products from @protocol_fx:
→ Up to 7x leverage on ETH and BTC
→ Minimal liquidation risk
→ Low funding costs
→ One-time opening and closing fees
→ Predictable leverage cost
→ 100% onchain and trustless
Meanwhile, fxUSD is positioned as:
1. Stable
2. Scalable
3. Decentralized
How can institutions access @protocol_fx’s yields?
1. Access via trusted partners
- This also includes other DeFi products, which may involve riskier strategies.
2. Access via fxSAFE
- Institutional-grade fxSAFE
- 9Summits: an EU-incorporated company
- MPC custody solutions
- Permissioned & compliant deposits through KYB/KYC
- Smart contract & peg insurance included
- No price impact deposits & withdrawals
- Institutional grade reporting
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