The Milk Road Show
Is Your Stablecoin Earning You Money? w/ CEO of Phoenix Labs and Contributor to Spark
Nov 29, 2024
Sam McPherson, CEO of Phoenix Labs and a prominent figure in the Sky ecosystem, discusses the revolution of yield-bearing stablecoins in DeFi. He reveals how users can earn up to 9.5% returns on USD-backed stablecoins, contrasting traditional options that sit idle. The conversation highlights the innovative Spark Protocol, its new liquidity layer, and the upcoming Spark Token. McPherson also touches on the evolution of governance in Maker, emphasizing the shift toward decentralization and the burgeoning opportunities in the DeFi space.
39:57
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Quick takeaways
- The emergence of yield-bearing stablecoins like USDS, offering up to 9.5% returns, is transforming the decentralized finance landscape by attracting users away from traditional options.
- Spark Protocol's innovative liquidity layer boosts revenue and enhances user experience in DeFi by providing efficient liquidity across multiple lending platforms.
Deep dives
Future of Yield-Bearing Stablecoins
The stablecoin landscape is evolving, with a distinct focus on yield-bearing alternatives like USDS. Unlike most stablecoins, which are typically centralized and non-yielding, USDS offers a significant yield of approximately 8.5%, set to increase to 9.5%. This growth is fueled by a decentralized model where users can earn returns on their funds while retaining access for transactions. The introduction of such decentralized, yield-bearing stablecoins is poised to reshape the decentralized finance (DeFi) sector by attracting users away from traditional, non-yielding options.
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