Crypto has come a long way from its fringe origins, and even though there are still questionable projects to this day there is no denying that the overall asset class is increasingly gaining legitimacy.
A wide range of legacy financial institutions that previously wrote off blockchain technology are beginning to embrace it, both from a technological and investment standpoint. In fact, JP Morgan was quietly buying BTC dips at the same time Jamie Dimon was publicly decrying Bitcoin as a fraud, and earlier this year Chase Bank opened up access to six crypto funds for clients who are looking to increase their crypto investment exposure.
The past year has seen a seismic shift in terms of cryptocurrency acceptance among larger professional investors, and 52% of institutional investors worldwide currently invest in digital assets, according to new research by Fidelity Digital Assets. Moreover, 71% of these institutional investors plan to buy or invest in more digital assets in the future.
Clearly, there is a growing demand and acceptance of cryptocurrencies as investments – and not just from casual traders on Robinhood. However, while smaller crypto traders are busy swing trading and gambling with Dogecoin and other “memecoins”, many of the larger investors are generating steady profits in the world of decentralized finance (DeFi).
DeFi is a broad term that encapsulates a wide variety of decentralized lending platforms and crypto exchanges – all capable of operating without a centralized intermediary. The automation of essentially all back-end processes dramatically eliminates overhead costs and allows for significant investor yields that are essentially unheard of within the world of legacy finance.
For instance, our DeFi lending platform Vauld allows investors to earn up to 12.68% APY on USD-backed stablecoins – which maintain the same value/purchasing power as the U.S. dollar and are therefore insulated from broader crypto/stock market movements. Investors who use Vauld are able to generate significant yields the moment they fund their account, with zero deposit or withdrawal fees and no mandatory lockup periods. And even though Vauld has yet to encounter any serious security breaches, Vauld’s investor funds are insured to the tune of $100 million by Lloyd’s London, meaning our users can recover their funds even in the event of a serious platform breach.
Every day, more individual and institutional investors are taking advantage of the impressive yields enabled through DeFi platforms – and Vauld offers the highest yields in the industry. As a result, record sums have been poured into DeFi protocols, and the total value locked up in DeFi protocols spiked to $60bn this May — up from less than $1bn at the start of 2020. In other words, this growing sector is already generating …….