In this episode of Empire, Simon Jones joins us to discuss DeFi's interest rate opportunity. A year ago, DeFi's meme was, "Why earn .01% in your bank account when you can earn 20%+ in DeFi". Fast forward to today, and TradFi offers higher yields than DeFi. Did we get rugged, or what's the new opportunity?

Tune in as we explore the correlation between TradFi and DeFi rates, DeFi's low cost-of-capital opportunity, the efficiency of market-driven protocols, importing TradFi yields on-chain and more!

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Timestamps:

(00:00) Introduction

(01:15) The Divergence of TradFi & DeFi Rates

(11:00) DeFi Responded 10x Faster Than the Fed

(17:42) Leveraging DeFi as a Cheap Source of Funding

(20:59) Importing TradFi Yields On-Chain

(27:35) Why Institutions Will Use On-Chain Products

(32:11) Replacing Regulation With Smart Contracts & Incentives

(36:46) Voltz and the Importance of Fixed Rates

(41:16) Will TradFi & DeFi Rates Eventually Converge?

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Resources

Voltz

https://www.voltz.xyz/

Voltz research paper on DeFi vs TradFi rates

https://www.voltz.xyz/tradfi-vs-defi-rates

Bell Curve episode with Simon

https://bit.ly/3PC7lEj

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Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.