Summary
TLDR: Bernstein notes that DeFi applications are now dominating the top revenue-generating protocols, with six out of the top 10 being DeFi apps. The previous cycle of unsustainable yields has given way to real yields this time around, leading to potential interest from global asset managers in DeFi ETFs and active funds.
Key Points
1. Six out of the top 10 revenue-generating protocols are DeFi applications, including Uniswap, Aave, Maker, GMX, Synthetix, and Sushi.
2. The previous cycle of DeFi saw unsustainable yields that led to a collapse, such as with the Luna stablecoin, which was pegged to the U.S. dollar.
3. This cycle of DeFi is different as it offers real yields, and with regulatory clarity, there may be potential for global asset managers to consider DeFi ETFs and active DeFi funds.