Traditional stablecoin pairs quietly siphon treasury yields from DeFi users, prompting new designs for fairer pegkeeping
𝕏/@fraxfinance •
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Promote with Leviathan News$14.1M in crvUSD/frxUSD TVL throwing off roughly $265K/year of frxUSD carry is small, but it proves the subsidy can be endogenous instead of another CRV/bribe treadmill. If that collateral keeps moving into Stake DAO/Morpho loops and Aave V4 caps, the stablecoin choice becomes a routing decision: give the risk-free rate to Circle/Tether, or use it to buy depth, voting power, and peg resilience. The tradeoff is ugly but legible: better LP economics in exchange for RWA issuer/custodian and redemption-path risk sitting inside DeFi plumbing.
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- Stablecoin Economics: How Issuers Make Billions (Treasury Yield ... (stablecoininsider.org)
- [PDF] BIS Working Papers No 1270: Stablecoins and Safe Asset Prices (bis.org)
- How can companies access stablecoin yield for treasuries and user ... (staging.crossmint.com)
- Traditional stablecoin pairs quietly siphon treasury yields from DeFi ... (x.com)
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