9min chapter

On The Brink with Castle Island cover image

Guy Young (Ethena) on the Past and Future of Crypto Interest Rates (EP.507)

On The Brink with Castle Island

CHAPTER

The Interplay of Real Interest Rates and Crypto Rates

This chapter explores the merging of real interest rates with crypto rates through tokenized treasuries and assets, affecting stablecoin supply dynamics. It discusses the impact of falling real rates on market liquidity, the cyclical nature of Real World Assets (RWAs) in the crypto ecosystem, and the various motivations behind stablecoin creation. The conversation also covers the rationality of seeking crypto yields, the unpredictability of future interest rates, and the potential shift towards higher rates as cryptocurrencies mature.

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