CandleFocus

Can we escape DeFi’s Ouroboros? Bridging real-yield in 2025

The article discusses the potential of decentralized finance (DeFi) in revolutionizing the financial experience for younger generations and unlocking new opportunities for passive, on-chain earnings. It highlights the rise of staking and liquid staking tokens (LSTs) in the crypto market, particularly in Ethereum, and predicts that a larger percentage of Ethereum supply will be staked in the coming years. The article also explores the need for new ways to generate yield beyond basic block rewards and the emergence of restaking-secured services and diversified income streams. It emphasizes the importance of integrating automation and diversified asset exposure on-chain to ensure the long-term viability of DeFi and attract institutional capital. However, the article notes that there is still a knowledge gap between DeFi builders, traditonal finance, and regulators, and calls for the building of infrastructure and the development of new asset types and gateways to tokenized products and hybrid experiences. Ultimately, the article suggests that DeFi needs to evolve and provide new rides and rails for financial assets in order to deliver on its promise of a more inclusive and meritocratic system.

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