Crypto finance is beginning to look at lot more traditional, Aave and Ethena founders say
Aave and Ethena founders state that DeFi is evolving to offer steadier, more predictable returns similar to traditional finance products.Summary
Stani Kulechov, founder of Aave Labs, and Guy Young, CEO of Ethena, asserted at the Digital Asset Summit (DAS) that crypto finance is maturing to resemble traditional finance by offering stable, predictable returns akin to bonds or savings products. Previously, crypto users primarily traded tokens or borrowed against them, seeking high, volatile yields. New tools, like those utilizing fixed-to-floating rate swaps (as mentioned regarding Pendle), allow users to lock in returns despite market volatility. Kulechov noted that Aave supports this evolution by providing deep liquidity pools that help bootstrap new DeFi products. However, he acknowledged that much of the current DeFi yield still relies on leverage, predicting that future stability will increasingly come from the tokenization of real-world assets moving onchain.
(Source：CoinDesk)