There is a silent transformation in progress in decentralized finance (DEFI).
While the previous bruise market of Defi was motivated by the writing of the eyes – and doubtful – of the areas and a speculative frenzy, the current growth was fueled by the sector becoming a backend financial layer for user -oriented applications and the increase in institutional participation, according to a Wednesday report by the Artemis analysis company and on the current Vaults.Fyi platform.
The total locked value (TVL) on higher DEFI loan protocols – notably Aave, Euler, Spark and Morpho – exceeded $ 50 billion and approaching $ 60 billion, increasing by 60% in the past year, according to the report. This growth was motivated by rapid institutionalization and increasingly sophisticated risk management tools.
“These are not simply platforms that give links; they evolve towards modular financial networks undergoing rapid institutionalization,” said the authors.
The “Defi Mulet”
One of the key trends recently highlighted is the demonstration of applications oriented by users who discreetly incorporate the DEFI infrastructure into the Backend to provide yield or loans. These features are abstract from users creating a more transparent experience, a trend often called “DEFI MULLET:” Frontal fintech, Backend Defi, according to the report.
Coinbase users, for example, can borrow against their bitcoin
Holdings propelled by the Backend infrastructure of the lender Defi lender Morpho. More than $ 300 million in loans have already been born via this integration this month, the report said.
The integration of Bitget Wallet with the AAVE loan protocol offers a 5% yield on USDC and USDT Holdings through the channels without leaving the Crypto Wallet application. Paypal also does something similar with its stablecoin Pyusd, offering yields close to 3.7% to Paypal and Venmo Wallet users, although without the DEFI element.
The report indicates that Crypto user -friendly fintech companies with large user bases, such as Robinhood or Revolut, can also adopt this strategy and offer services such as Stablecoin credit lines and loaks supported by assets via DEFI markets, creating new flows of income -based income.
Rwas tokenized in deffi
Increasingly, the DEFI protocols introduce use cases for the tokenized versions of traditional instruments such as US Treasury bills and credit funds, also called real assets (RWA).
These tokenized assets can serve as a warranty, earn a return directly or be grouped in more complex strategies.
Read more: Tokenized Apollo Credit Fund made its debut with a renowned strategy by security, Gauntlet
The tokenization of investment strategies also becomes popular. Pendle, a protocol that allows users to divide principal yield flows, now manages more than $ 4 billion of total locked value, a large part in tokenized yield products.
Meanwhile, Susde and similar yield tokens of Ethena have introduced products that provide yields above 8% thanks to strategies such as cash and transport trades, while abstract the operational load for the end user.
Climb of asset managers in chain
A less visible but critical trend highlighted in the report is the rise of crypto-native asset managers. Companies like Gauntlet, RE7 and Steakhouse Financial Alloue Capital through DEFI ecosystems using strategies managed by professionals, resembling the role of traditional asset managers.
These actors are deeply anchored in the governance of the DEFI protocol, refine risk parameters and deploy capital on a range of structured yield products, real tokens (RWAS) and modular loan markets.
The report noted that the capital of the sector under management has been four times has been raised since January – from $ 1 billion to more than $ 4 billion.
Read more: Crypto for Advisors: DEFI Yields, Renewal
