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DeFi lending protocols hold nearly $60B in assets amid new wave of adoption: report
- DeFi lending Total Value Locked (TVL) has surpassed $50B, approaching $60B, marking a 60% increase in a year driven by institutionalization.
- The 'DeFi mullet' trend involves embedding DeFi infrastructure in user-facing applications for yield generation and loans, with examples like Coinbase-Morpho originating $300M in loans.
- Tokenized Real-World Assets (RWAs) like US Treasuries are increasingly used as collateral and yield sources in DeFi, bridging traditional finance with the decentralized digital economy.
- DeFi is evolving into a foundational financial layer for user-facing applications and experiencing institutional participation, reshaping the landscape of decentralized finance.
- Top DeFi lending protocols such as Aave, Euler, Spark, and Morpho have seen their TVL surge past $50B, nearing $60B, indicating rapid institutionalization and advanced risk management tools.
- The 'DeFi mullet' strategy involves integrating DeFi backend infrastructure in mainstream fintech applications, offering seamless access to DeFi services like borrowing against crypto holdings.
- The integration of tokenized RWAs in DeFi allows for the use of traditional financial instruments as collateral for loans or investment strategies, fostering a connection between conventional finance and decentralized digital economy.
- Protocols like Pendle and Ethena are facilitating tokenization of investment strategies and yield-bearing tokens within DeFi, simplifying complex financial operations for end-users.
- Crypto-native asset managers, such as Gauntlet and Re7, are gaining prominence in DeFi, managing capital across ecosystems and participating in governance to fine-tune risk parameters and deploy capital efficiently.
- On-chain asset managers are professionalizing DeFi investment strategies, with firms like Steakhouse Financial influencing the sector's growth by managing capital across structured yield products and tokenized RWAs.
- The specialized sector of on-chain asset managers has witnessed significant growth, increasing from $1B to over $4B since January, demonstrating the rapid professionalization and institutionalization of DeFi investment strategies.
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