By Krzysztof Gogol, Dawid Rymarczyk, and Igli Kristo Contrary to common belief, it is the largest borrowers in DeFi who are behind the most leveraged stablecoin positions. Yet, the liquidations almost never happen. Across Aave and Morpho, the largest holders of yield-bearing stablecoins (YBS) routinely operate at 5-8x leverage and,
A savings rate is easy to compare. Understanding what actually sits behind it is harder. Two products can show a similar APY while relying on completely different assets to generate it. One might depend heavily on crypto lending. Another might hold government debt, stablecoins, or institutional credit. Most use some
For any stablecoin savings product, one question matters as much as the yield: how easily can you get your funds back when you need them? It sounds straightforward. If a product is fully backed, the money should be there. But having enough assets and having enough assets available right now
Any wallet, neobank, exchange, or custodian offering a savings product will face the same questions: Where does the yield come from? How easy is it to access funds? And if something goes wrong, who takes the loss? These questions are important because when markets are stable, most yield products seem