New solutions that offer more stable and predictable income opportunities have begun to attract attention in crypto asset markets, similar to the world of traditional finance. With the development of digital financial infrastructures, it becomes possible to obtain more security-based returns such as bonds or deposit products in the DeFi field.
Fixed and Variable Return Option with New Tools
Stani Kulechov, founder of Aave Labs, and Guy Young, CEO of Ethena, evaluated the dynamics of this transformation at the Digital Asset Summit (DAS) event held in New York. According to Young, in the financial world, risks are often distributed in different ways, and these fixed income products have remained in the background in the DeFi ecosystem for a long time.
In particular, platforms such as Pendle allow users to choose between fixed or variable return products. According to Young’s assessment, it is very difficult to predict even three months ahead in the crypto space. On the other hand, thanks to new solutions, there is a chance to obtain a certain rate of return despite market fluctuations.
It is known that until recently, DeFi was mostly done through token buying and selling or borrowing against collateral, but these transactions generally provide high and fluctuating returns. Now, with the emergence of products that offer more stable income, alternatives for users are increasing.
Liquid and Strong Capital Pools Stand Out
Kulechov stated that the deep capital pools provided by Aave play an important role in the development of new products in the DeFi field.
By acting as a liquidity provider, Aave fuels the ecosystem and supports the introduction of new products in DeFi.
Stating that these models are still mostly based on trading and leverage systems, Kulechov stated that it may take time for the revenues obtained from traditional lending mechanisms to gain weight in DeFi.
Young emphasized that it is not easy to create fixed returns in the crypto market and that market movements are difficult to predict even in the short term of three months.
With the tokenization process, which has been on the agenda frequently in recent years, moving traditional financial assets to blockchain can open a new page for DeFi. In this way, returns and economic models are expected to increasingly consist of traditional financial markets.
According to what was conveyed in the panel, it is predicted that in the coming period, as fixed income financial products become more prominent in the DeFi world and liquidity diversifies, the line between the crypto field and traditional finance will become increasingly blurred.
