Can InfiniFi Unlock Higher Yields with Duration Assets in DeFi?

Apr 13, 2025

Join Ken Deeter, a General Partner at Electric Capital with a focus on early-stage DeFi, and Rob Montgomery, CEO of InfiniFi Labs, revolutionizing on-chain banking. They discuss how InfiniFi introduces duration matching to unlock sustainable yields for stablecoin holders. Dive into the competition between DeFi and TradFi, and learn about innovative yield optimization strategies. The conversation explores automation in DeFi through Infinifi's solutions and the future integration of real-world assets, catering to both casual and serious investors.

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ANECDOTE

Accidental Discovery of Fractional Reserve

Rob Montgomery accidentally discovered fractional reserve banking could improve yields by experimenting with duration asset matching.
His spreadsheet revealed that combining liquid and locked deposits actually increased overall returns, proving a novel DeFi approach.

INSIGHT

Importance of Duration Assets

Duration assets are fixed-term loans or instruments with a maturity date providing rate certainty.
These assets carve off interest rate risk and are essential for financing real businesses beyond short-term trading.

INSIGHT

Laddering Boosts Yield Performance

Laddering design rolls portfolio maturities to match depositor withdrawal preferences.
Better asset-liability matching enables more deployment into high-yield, longer-duration assets, raising overall returns.

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Rob Montgomery is the CoFounder and CEO at InfiniFi Labs and Ken Deeter is General Partner at Electric Capital, who led InfiniFi's most recent round.

In this episode, we explore how InfiniFi is introducing duration matching to DeFi to unlock more sustainable, higher-yield opportunities for stablecoin holders, alongside insights from Electric Capital on the future of yield innovation.

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Timestamps

0:00 - Intro
5:22 - Rob’s background
7:10 - Ken’s background and Electric Capital
9:59 - How does DeFi mature beyond degen games?
13:53 - What is fractional reserve banking?
16:01 - Automating fractional reserve banking with InfiniFi
18:50 - The need for more duration assets in DeFi
24:44 - Sponsor break
25:25 - Where InfiniFi yield comes from
30:30 - InfiniFi vs traditional banks
37:10 - DeFi needs to take bigger swings at bigger ideas
40:53 - Why Electric invested in InfiniFi and teams like it
43:55 - Sponsor break
45:34 - Who is InfiniFi built for?
49:49 - The opportunity for InfiniFi to work with RWAs
52:44 - The growing need to simplify exposure to yields
56:06 - Closing

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🔗 Guest Links 🔗

► InfiniFi website: https://infinifi.xyz/
► InfiniFi on X: https://x.com/infinifilabs
► Rob on X: https://x.com/RobAnon94
► Ken on X: https://x.com/Puntium

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All opinions expressed by hosts and podcast guests are solely their own opinions. Podcast guests and hosts may have positions in the assets or other matters discussed in this podcast. DeFi Dad, Nomatic, and Electric Capital are all invested in InfiniFi. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Do your own research. This is not a recommendation or endorsement to buy any token(s) related to any platform(s) discussed.