Fonship is a joke
Fonship is a joke
AAVE-0.49%
COMP+0.40%
SNX+0.81%
UNI+0.68%
LINK0.00%
DAI+0.03%
USDC-0.01%
PYUSD0.00%
🧵 1/ What if I told you that crypto already has its own version of QE and rate cuts? It’s happening live. It’s called Decentralized QE — and it’s powering altcoin liquidity without the Fed. Let me explain 👇
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2/ In TradFi, when central banks cut rates or do QE: •Borrowing becomes cheaper •Liquidity flows to risk assets •Stocks, housing, and startups rally This is how bull markets are engineered.
3/ In crypto, there is no central bank. But we do have: •🪙 Stablecoins (USDC, DAI, FDUSD, PYUSD) •🧠 Lending protocols (AAVE, Compound, Spark, Morpho) •🔁 On-chain leverage + DeFi loops Together, these form on-chain monetary policy.
4/ When stablecoin supply increases + DeFi lending rates drop… …it acts like a rate cut. Borrow becomes cheap. Capital rotates. Alts run. That’s Decentralized QE in action.
5/ Just like the Fed prints reserves… On-chain QE happens when: •Stablecoin whales supply idle capital •Borrowing demand grows (for perps, farming, DAOs) •Lending yields compress = Liquidity unlocks, price moves.
6/ During 2020–2021: •Stablecoin supply exploded •AAVE & Compound lending surged •Alts like LINK, SNX, UNI, YFI 10x’ed This wasn’t just a “crypto bull run” — it was on-chain credit expansion.
7/ So what should you watch now? 👇 ✅ Stablecoin supply growth ✅ Lending APRs trending lower ✅ TVL rising in AAVE, Compound, Spark ✅ Borrowing utilization going up This is your on-chain Fed Watch.
8/ The best part? This system is global. Borderless. Permissionless. While TradFi waits for Powell… Crypto already has the rails to reprice risk in real time.
9/ TL;DR •Stablecoins = on-chain money •Lending = on-chain credit •APR compression = rate cut •DeFi boom = liquidity expansion Welcome to Decentralized QE. Do whatever your gut says.
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