IntoTheBlock: US Treasuries & Real Assets Boost DeFi Interest

IntoTheBlock, a market intelligence firm, highlights that US treasuries, stablecoin yields, and real-world assets are driving renewed interest in decentralized finance (DeFi).

IntoTheBlock's head of research, Lucas Outumuro, reports a surge in DeFi interest driven by MakerDAO's (MKR) new 8% yield on its stablecoin, Dai (DAI). In less than a week, this yield strategy has attracted over $1 billion in deposits.

MakerDAO, a pioneering lending protocol, adjusted the Dai savings rate (DSR) to 8% recently, making headlines in the crypto community. Funded mainly by Maker’s revenues from US treasuries, this move is already influencing Maker's dynamics and promises a broader ripple effect in the DeFi ecosystem.

IntoTheBlock emphasizes that incorporating real-world assets, like treasuries, is reshaping the DeFi narrative, especially during unstable trading periods. In just one week, the amount of Dai benefiting from the DSR spiked by almost $1 billion. This uptrend underscores the integration of real-world assets into DeFi, with protocols like Ondo Finance showcasing its potential with $164 million deposits in tokenized treasuries.

The crypto analytics expert also notes that Maker’s governance token, MKR, has jumped 35% in the past month, a spike attributed to significant holder accumulation. While the current MKR price surge might cool down, the strategic role of the DSR cannot be overlooked. Even a reduced DSR of 5% would pave the way for other DeFi platforms to leverage a sustainable yield-generating stablecoin. This shift not only simplifies access to treasury yields for many but also underscores Dai's pivotal role in attracting capital and new users to the DeFi and broader crypto space.

At the time of this report, MKR is trading at $1,248, marking a 1.66% uptick in the last 24 hours.

Aug 14, 2023