Big issue: many Earn products inside neobanks/wallets have no one dedicated to it (no DeFi-native/risk person in-house), it's just whatever their BD team sources and closes.
That leads to a lot of paid integrations: extra incentives, either kicked back to the foundation/company or paid out as boosted yield to users.
The problem is these opportunities often carry ~2% real APY, propped up entirely by incentives, nowhere close to bluechip assets/vaults on a real basis.
If a fintech still wants to advertise 6-7%, they have to reach for riskier products, and there's no shortage of those in this space. So the real question: as a fintech, do you actually want your users exposed to that risk?
Once incentives dry up, you're left with two options -drop to the "DeFi base rate" or spin up a separate high-yield account. You can't have safety and high yield in the same product.
That leads to a lot of paid integrations: extra incentives, either kicked back to the foundation/company or paid out as boosted yield to users.
The problem is these opportunities often carry ~2% real APY, propped up entirely by incentives, nowhere close to bluechip assets/vaults on a real basis.
If a fintech still wants to advertise 6-7%, they have to reach for riskier products, and there's no shortage of those in this space. So the real question: as a fintech, do you actually want your users exposed to that risk?
Once incentives dry up, you're left with two options -drop to the "DeFi base rate" or spin up a separate high-yield account. You can't have safety and high yield in the same product.
https://x.com/stablecoin_p/status/2074509460354003182
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