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Stani.eth (@StaniKulechov): Today The Federal Reserve lowered their interest rate by 25 bps. From my perspective this is an increase for the arbitrage opportunity for rates in Aa…

Estimated coin impact

Scores are not price-change percentages. High impact means a score of +70 or more, or -70 or less.

Today The Federal Reserve lowered their interest rate by 25 bps. From my perspective this is an increase for the arbitrage opportunity for rates in Aave. Over the past 5 years Aave has been able to beat the us t-bill rates, offering reliable and uncorrelated yield. My prediction stands that as the federal reserve has more pressure on lowering the interest rates to decrease the risk of slowing the economy down, the rate environment in TradFi will decline over the next 2 years and more. As all TradFi rates follow The Federal Reserve rates and will compress all rates in TradFi. This results Aave becoming a significantly attractive DeFi benchmark yield that will be the catalyst for Fintechs to integrate Aave.

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