What drives the interest in the crypto economy and how much should it be?

In the previous article, we looked at what influences the fiat economy's interest. The focus of this article is the crypto economy. We have three parts here: 1. We look...

What drves the interest rate?

What drives the interest rate in the fiat economy and how much should it be?

In every monetary system, there is interest - the price to be paid for using someone else money. In this article, we focus on the “base interest” - i.e. how...

Roadmap to Fixed Income Markets

Compound and Roadmap to Crypto Fixed Income Markets

Traditional fixed income markets have emerged in the last 350 years with: 19 trillion USD base money (central banking created money – M0) 36 trillion USD narrow money (M1) 73...

Capability to Borrow

What really matters for the borrower? Answer – Capability to borrow.

There are the custodian and non-custodian crypto lending platforms. The key difference between them is who controls the assets - the first ones control your crypto assets, by the second... Approach

Why are the collateralization ratios so high in DeFi Protocols?

The current collateralization ratios are ca 300% + for the DeFi borrowing/lending protocols. These ratios benefit the lenders on these platforms because over-collateralization protects their loans. However, these ratios reduce...

Follow the money

Why are DAI and USDC lending rates in DeFi at 10%

DAI and USDC lending rates on DeFi systems are around 10%. Considering the current low yield on most of the investment classes and upcoming negative interest era, we can just...