US Treasuries and Real World Assets Are Boosting Interest in DeFi

According to market intelligence firm IntoTheBlock, US treasuries, stablecoin yields, and real-world assets are providing a boost to decentralized finance (DeFi).

Head of research Lucas Outumuro notes in a recent article that MakerDAO’s (MKR) new 8% yield on stablecoin Dai (DAI) has reignited interest in DeFi.

In just under a week, the stablecoin has attracted $1 billion in deposits. MakerDAO, the first lending protocol, has grabbed the attention of the crypto world with this move.

DAI can earn the DAI savings rate (DSR), which was recently raised to 8% as of this past Sunday.

This yield is funded by Maker’s revenues, which largely come from supplying part of its collateral into US treasuries. This shift is already impacting Maker and is expected to extend beyond the protocol.

According to IntoTheBlock, the DeFi space is benefiting from exposure to real-world assets, providing a new story amidst volatile trading conditions.

The growing interest in DeFi is being driven by real-world assets, such as treasuries.

This week, the amount of DAI earning the DAI Savings rate increased by almost $1 billion, with DAI supply rising by almost as much ($800 million), reaching a three-month high.

This increase in DSR confirms the trend of real-world assets in DeFi, where other protocols like Ondo Finance have already established themselves by collecting $164 million in deposits for their tokenized treasuries.

According to veteran American investor Jim Rogers, the upcoming bear market is expected to be the largest one in his lifetime of 80 years.

In a recent interview with Real Vision Finance, Rogers has compared the current economic situation to that of the Great Financial Crisis of 2008, but he believes that the circumstances now are much worse.

Rogers, who is closely associated with prolific investor George Soros and is a co-founder of Soros Fund Management, has expressed concern about the mounting debt within the system and its potential to trigger a severe downturn in risk assets.