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DeFi and Cryptocurrency Risks and Rewards (Feat. Lily Francus)

Crypto Critics' Corner

CHAPTER

Is There a True Risk Free Rate for Cryptocurrencies?

Inflation rewards do not actually generate any true economic value. They just shift the balance of who owns the marked cap of the currency itself. So if you have an inflation reward, by staking model, fundamentally, you know, any kind of value ad is indogenous to those who stake at the expense of those who do not stake. And indefinitly, where ordoes argue that it's taking deflationary rewards without inflation rewards would essentially be taking a risk-free rate in this case. But fundamentally, my guess, and i haven't done no true analysis on the cesis that even if you use that line of saking yield reasoning, the riscurate is probably positive.

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