The hunt for yield never really ends\u2014but how we find it is changing. As tokenization brings real-world assets (RWAs) on-chain, investors are now evaluating: how do traditional yield sources stack up against DeFi-native ones when both are accessible on-chain? <\/p>\n\n\n\n
In a market where both TradFi and crypto have stumbled, which types of yield have held up\u2014and which have fallen short?<\/p>\n\n\n\n
Over the past two years, digital asset markets have undergone significant transformations. Bitcoin and Ethereum experienced substantial gains in early 2023 but faced renewed volatility entering 2024<\/a>.<\/p>\n\n\n\n Unlike common traditional instruments, these assets don\u2019t inherently generate yield. Staking protocols must be used to access income, and even then, rewards are paid in native crypto assets, making the value of returns subject to market swings.<\/p>\n\n\n\n Meanwhile, stablecoin staking yields have declined sharply<\/a>, driven more by protocol-level incentives and liquidity mining programs than real-world income generation. In contrast, tokenized traditional assets\u2014such as U.S. Treasuries, private credit, and money market funds\u2014have emerged as sources of more predictable income streams, especially when accessed through institutional-grade infrastructure<\/a>.\u200b Let’s examine how different yield strategies have compared.<\/p>\n\n\n\nComparing Yield, Volatility, and Counterparty Risk: FY2023 – FY2024<\/h5>\n\n\n\n