The terminology used in #DeFi is misleading. Put into legacy financial terms we have means of capitalizing on vol generating double digit yield, incentivized by inflation neutral monetary policy systems designed to ramp monetary velocity beyond Central Banking's wildest dreams.
Icing on the cake -> These systems also manage risk by restricting the affect of volatility on a portfolio. Acting much like an options straddle both appreciation & depreciation is muted in exchange for lucratively capitalizing on vol.
There's tool that facilitate single sided exposure to a specific asset where full upside and downside is achieved. There's other systems with monetary policy that allocates a portion of yield to escrow for a period of time. Other systems where there's pure platform revenue...
... share managed by the DAO asset, and the DAO asset further has a fascinating monetary policy implementation encouraging appreciating using a decaying inflationary model balanced with deflationary pressure.
With constant monetary policy iteration, and novel implementations constantly appearing, there's no way a single monetary policy, such as that managed by the FED, can possible keep up with the rate of progress occurring in the DeFi space.
Additionally, the policies implemented in DeFi are likely a non-starter for sovereigns because they deviate too significantly from the status quo. Systemic infrastructure, and legacy banking rails, simply cannot accommodate the radical differences.

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More from @noahseidman

22 Feb
Single sided pooling: full risk on exposure, full upside & downside coupled with yield + protocol incentives

Stable coin pair pooling: muted upside & downside, more stable $ valuation coupled with yield + protocol incentives
Asset pair pooling: muted upside & downside, more stable $ valuation than a full risk on position, but less $ stable than when pairing with a stable coin. Yield + protocol incentives, no doubt.
Three different major components for a strategic yield bearing portfolio. Aside from volatility risk, protocol risk are notable. Allocation to a single protocol carriers more risk can diversifying amongst several. Also worth mentioning are the #CeFi protocols.
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