Summary
Treasury yields have increased significantly, leading to a rise in demand for tokenized versions. The 10-year yield has gone up from 1.69% to 4.22%, impacting the appeal of borrowing and lending dollar-pegged stablecoins in the decentralized finance market.
Key Points
1. The rapid rise in Treasury yields in the past two years has fueled demand for their tokenized versions.
2. The 10-year yield, the so-called risk-free rate, has risen to 4.22% from 1.69% since March 2022, denting the appeal of lending and borrowing the dollar-pegged stablecoins in the decentralized finance market.
3. This increase in Treasury yields has impacted the lending and borrowing dynamics in the decentralized finance market, affecting the use of stablecoins.