Declining Rates: The DeFi Revival Nobody Saw Coming

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At Token2049 in Singapore, Stani Kulechov, the founder and CEO of Aave, announced that low interest rates would coax the growth of decentralized finance. He also whispered that tokenized real-world assets might become important, especially as regulations decide to behave themselves-at least long enough for the auditors to stretch their legs and declare a tea break. 🧙‍♂️💸

“I reckon every tiny rate cut by a central bank, whether it’s the Fed or the ECB, is basically extra arbitrage for these DeFi yields,” Kulechov told the crowd, with the confidence of a man who has discovered a loophole in the universe and brought a calculator. “As rates go down, we’re going to see a really good bull market for DeFi yield.” 😂

His remarks fit neatly with the latest DeFi mischief. In August 2025, Ethereum’s price teased a new high of $4,953, spurred by institutional appetite and a splash of spot Ethereum ETF inflows. The so‑called capital rotation from Bitcoin to Ethereum nudged its ecosystem TVL up 41% to more than $90 billion, according to DeFillama data. A situation that would make even a dragon smile and demand a receipt. 🐉💹

Aave at the forefront in the DeFi space

In the first week of September, Aave celebrated a milestone: over $1 billion in total fees collected across three years. It also logged a 100% growth in fees over the past 90 days and supposedly held about 65% of the active loan volume. A neat bundle of numbers that probably deserves its own ledger named “Things That Went Right.” 💰📈

On September 24, Galaxy, a financial services firm with a portfolio that could double as a fortress, turned to Aave to manage its treasury, improve borrowing efficiency, and build structured DeFi products for large‑scale institutional use. Galaxy cited strong liquidity, attractive borrowing rates, and clear risk principles as the reasons for choosing the platform. If only all dragons cared so much about risk dashboards. 🛡️⚓

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2025-10-01 14:33