People have flocked to high-yield crypto environments as interest rates for traditional investments are staying low by comparison. It’s been nearly a year since the DeFi summer, but the optionality has only increased, along with the amount of “money legos” that are being combined in different ways.
At Consensus 2021, Felix Fen, co-founder and CEO of Set Protocol; Zac Prince, CEO of BlockFi; and Stani Kulechov, Chief Executive Officer of Aave, came together to discuss how people seeking out higher yield on their crypto assets can access a variety of services, and what the tradeoffs there can be.
Overall though, there was agreement that given the low interest rates seen in traditional finance at the moment (in the U.S. they’re at 0.25%, the lowest they’ve been in history) people are turning to crypto generally, not just as a hedge against inflation but also for the high returns they offer.
Translating crypto with interest rates
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Prince said he saw real value in using interest rates to translate something really powerful that’s happening in the crypto ecosystem in the terms that everybody is already familiar with.