
Analyse Podcast Decentralized Finance: Past, Present & Future with Rawson Haverty
16 snips
Jul 17, 2022 AI Snips
Chapters
Transcript
Episode notes
Design Lending With Overcollateralization
- Favor over-collateralized, transparent mechanisms when designing lending protocols.
- Use immutable on-chain liquidation rules to protect protocol solvency and users.
Macro Arbitrage Drove DeFi Yields
- A macro arbitrage existed between abundant institutional dollars off-chain and higher yields on-chain during the bull.
- Friction getting institutional funding into DeFi narrowed those spreads and shaped yields.
DeFi Yields Move With Token Speculation
- DeFi yields rise when speculative value of network tokens increases, and fall when rates rise.
- Thus DeFi yields currently show an inverse relationship to traditional interest rates.
