2023-11-05 15:01:48

The DeFi market has been thriving since the beginning of 2020 and will reach the TVL milestone of more than $180 billion by the end of 2021. Since then, along with the market downtrend, the value of assets locked (TVL) on DeFi protocols dropped sharply to less than $50 billion.As a pillar of technological progress and the driving force of the entire blockchain industry today, however, DeFi still needs to work on better tokenomics models with a high token inflation rate.

Some tokens lost more than 90% of their value and even disappeared from the market, leading to a significant reduction in profits for users. The yield from DeFi is now only equivalent to TradFi (Traditional Finance – traditional finance).

It is easy to see that TradeFi offers a much less risky investment model than DeFi. So when the interest rates between the two arrays are the same, DeFi users will gradually withdraw and return to TradeFi. This situation requires a new source of yields to revive DeFi, and Real World Assets are the answer.
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