I really like Hasu; he always speaks the brutal truth. For example, he says that thinking stablecoins are more profitable than lending markets is just wishful thinking.
You should see if what he says is right:
He says that actually, the lending market and the stablecoin operating model are the same; both borrow funds from one person and lend them to another, earning the interest spread.
Stablecoins can earn returns due to their implied convenience of being globally transferable, but this is limited to stablecoins like USDT and USDC that have liquidity and wide acceptance. All other stablecoins are competing for the same scarce pool of funds and increasingly need to pay the same interest to depositors!
For new stablecoins, there are only two truly important advantages: super strong capital distribution capability (so they can borrow money at a lower cost) and asset-liability management capability (able to lend out at high interest rates).
This whole idea that stablecoins are somehow more profitable than lending markets is one of the biggest misunderstandings in Defi.
Both lending markets and stablecoins borrow from Alice to lend to Bob and take a spread in the process.
It's true that stablecoins have an implied convenience yield from being globally transferable etc. but this is reserved for stablecoin with deep global liquidity and acceptance network, like USDT and USDC. Everyone else competes for the same scarce capital pool and increasingly need to pay the same interest to lenders.
For a new stablecoin entering the market, there's really only a two advantages that matter - superior distribution (which lets you borrow lower) and superior ALM (which lends you lend out higher). Which one do AAVE & FLUID have?
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