Meet @cyrille_briere, Contributor at @protocol_fx, on how institutions can access real DeFi yields. Current yields on T-Bills are 3.86%, while US inflation stands at 2.96%. This means institutions providing liquidity on T-Bills earn roughly 1% after adjusting for inflation 🧵👇

Meanwhile, yields on stablecoins can reach up to 12.49%. You might wonder why there’s such a massive difference between stablecoin yields and T-Bills.

@cyrille_briere explains that stablecoins have higher yields due to the trustless paradigm in crypto, whereas traditional finance still relies on a trust-based system.

Despite higher returns in crypto, institutions face several challenges: 1. Wallet custody 2. Smart contract, collateral, oracle, peg, and liquidity risks 3. Reporting and transparency

Let’s take a look at @protocol_fx’s DeFi strategy: 1. Powered by USDC and fxUSD and is fully onchain. 2. 100% organic & sustainable yield 3. Lower risk and better rewards

This makes the strategy: → Transparent and easy to report → Backed by Lido stETH and WBTC → Over-collateralised → Designed for a reliable peg → Audited by OpenZeppelin, Trail of Bits, and Secbit

With @protocol_fx’s stablecoin DeFi strategy, they: → Grew TVL by $100M → Maintained a stable APY of 12.7% This strategy is based on @protocol_fx active users and how much volume they bring Increase in fees generated by the protocol → Increase in TVL → Increase in yields

@protocol_fx has two core revenue streams: → Stablecoin yield generation → Leverage products

Some advantages of using leveraged products from @protocol_fx: → Up to 7x leverage on ETH and BTC → Minimal liquidation risk → Low funding costs → One-time opening and closing fees → Predictable leverage cost → 100% onchain and trustless

Meanwhile, fxUSD is positioned as: 1. Stable 2. Scalable 3. Decentralized

How can institutions access @protocol_fx’s yields? 1. Access via trusted partners - This also includes other DeFi products, which may involve riskier strategies.

2. Access via fxSAFE - Institutional-grade fxSAFE - 9Summits: an EU-incorporated company - MPC custody solutions - Permissioned & compliant deposits through KYB/KYC - Smart contract & peg insurance included - No price impact deposits & withdrawals - Institutional grade reporting