Opinion: Stablecoins are not more profitable than the lending market
2025-09-18 19:17:32 /

Lido strategic consultant Hasu replied to user X's post "Lending DEX like AAVE and Fluid have enough advantages to issue stable coins" by saying that the idea that stable coins are more profitable than the lending market is one of the biggest misunderstandings in DeFi. Both the lending market and stable coins involve borrowing money from A and then lending it to B, earning the interest difference in the process. Stable coins do have hidden benefits such as global transferability, but these benefits are limited to stable coins with deep global liquidity and network acceptance, such as USDT and USDC. Everyone else is competing for the same scarce pool of funds and increasingly needs to pay interest to lenders. For new stable coins entering the market, there are actually only two advantages - superior distribution (allowing you to borrow at a lower amount) and superior ALM (allowing you to lend at a higher amount). Which one do AAVE and Fluid have?

Disclaimer: This specification is preliminary and is subject to change at any time without notice.

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