Stablecoin Fundamentals - Stablecoins offer the allure of digital currency with free movement and no transaction costs [1] - The fundamental use case of stablecoins is for transactions, not for holding as an investment [2] - Buying stablecoins means foregoing opportunity cost or interest, approximately 4% yield, that could be earned from CDs or treasury bills [3] - Stablecoin companies invest the proceeds from stablecoin sales in very short-term treasury bills as collateral [3] Impact on Banking System - The US banking system relies on deposits, and a shift to stablecoins could reduce deposits available for lending [5][6] - Reduced bank deposits could lead to a decline in credit availability for car loans, student loans, and mortgages [6][7] - Banks could potentially offer stablecoins as a service to clients, similar to existing digital payment rails like Zelle [11][12] Market and Economic Risks - Stablecoin investments are limited to short-term Treasury bills, potentially distorting the short-term Treasury curve [7][8] - Concerns exist that people are buying stablecoins as part of a portfolio, despite them not being an asset that appreciates in value [14] - The buildup in the overall supply of stablecoins suggests they are not solely being used for transactional purposes [16] - Increased demand for short-term bills due to stablecoins may dislocate the short-term bill market from the Treasury curve [19]

RT mert | helius.dev (@0xMert_)what/where is the best place to earn yield on USDC right now? ...

USDC Yield Opportunities - The report focuses on identifying the optimal platforms for earning yield on USDC [1] Investment Focus - The primary concern is maximizing returns on USDC holdings [1]

Crypto Industry Vision - True crypto industry success lies in remaining within the onchain ecosystem [1] - The industry envisions a future where stablecoins are used for real-world transactions, DeFi yield generation, and investment in tokenized assets [1] - Onchain solutions offer yield earning, borrowing collateral, and global asset access with self-custody [2] Traditional Finance vs Onchain Finance - Traditional banks face challenges with low yields, poor user interfaces, and potential fund freezing [2] - Current onchain Real World Assets (RWAs) are new and have liquidity limitations, but the space is rapidly evolving [2] - Banks must adapt to crypto or risk becoming obsolete [2] User Behavior - Users are minimizing fiat currency holdings in banks, retaining only what is necessary [3]

Let's turn now to crypto as shares of the blank check company Dynamix Corp. are higher. On the news, they'll merge with crypto venture the Ether Reserve to form a new company called the Ether Machine. Got that.That deal is expected to close in Q4. And Ether Machine will trade on the NASDAQ under the ticker EHTM. It's a spa.In other words, CNBC crypto reporter Tana McKiel says it's vying to be the micro strategy of Ether, but with a focus on generating yield. Let's bring her in to discuss. And tonight, this ...

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Yield Opportunities - Wasabi Protocol 提供稳定币的高 APY (年化收益率) [1] - 用户可以在 Solana, Base, 和 Ethereum 链上通过 Wasabi Protocol 赚取 USDC 的收益 [1] - Wasabi Protocol 旨在提供更具竞争力的收益和更多链的选择 [1] Protocol Overview - Wasabi Protocol 专注于为用户提供稳定币收益 [1]

Federal Reserve Policy & Interest Rates - The market is debating whether the Federal Reserve should cut interest rates by 25 basis points [5][6] - The current Fed funds rate is floating around 425 to 450 basis points, approximately 43% [2] - Some believe the Fed is too focused on past data and risks being late in responding to economic changes [4][6][10] - Cutting rates by 75 basis points occurred last year [5] Inflation & Economic Factors - Housing costs, a significant component of CPI and PPI, are impacted by the Fed's balance sheet reduction of $35 billion [3] - Tariffs' full effect on inflation is still uncertain [2][6] - The speaker believes inflation is moderating and not out of control [5][6] - The Personal Consumption Expenditures (PCE) at 31% is not a major concern [9] Bond Market & Treasury Yields - The 2-year Treasury note yield is around 4% [2] - The 10-year and 2-year Treasury yields are at the same level as in autumn 2022 [13] - The bond market and the Federal Reserve may not be aligned in their expectations [12]