Here's What Will Drive the Next DeFi Summer

How to have a winning DeFi product for next cycle:

> USD-based: most onchain demand is denominated in dollars and DeFi users wants yield on those dollars. that is the biggest TAM by far.

> High yield: nobody is coming to DeFi to earn 2% APY. The user base is degen by nature, and the yield should reflect that, it has to situate least 200-300bps above the risk-free rate.

> Sound risk profile: yield should be uncorrelated from the crypto market and come from exogenous source. It should also be based on robust risk principles.

> Integration into major DeFi primitives: product has to actually be integrated into DeFi and usable as collateral, not just be tokenized and that's it.

Source: https://x.com/tradetheflow_/statu...
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