Summary
TLDR: Yields on bridging protocols in the DeFi ecosystem have been rising above 15% due to increased demand from users and greater interoperability between blockchains. Third-party bridging protocols like Across and Synapse are reaping higher fees as the ecosystem extends across networks. These yields are paid to liquidity providers who supply the bridges with cryptocurrencies. The higher yields do not necessarily reflect increased risk, as the bridging market is still immature and inefficient.
Key Points
1. Bridging yields have been rising fast recently, pushing above 15%, due to higher demand from users and the trend towards greater interoperability between blockchains.
2. Third-party bridging protocols like Across and Synapse are reaping higher fees as the DeFi ecosystem extends across networks, leading to increased yields for liquidity providers who supply the bridges with cryptocurrencies.
3. The higher yields in bridging may not necessarily reflect increased risk, as the market for bridging is not yet mature and highly efficient, according to Exponential.fi co-founder Mehdi Lebbar.