One thing Iāve noticed from speaking to Neobank/ fintech founders across Africa is the concern that DeFi is too risky. I understand the sentiment, and honestly itās a valid one.
But a common misconception is that all yield sources are the same. Native DeFi protocols like
@aave generate yield from crypto borrowing demand, while RWA platforms like
@Securitize generate yield from assets such as Treasury bills, private credit, and other off-chain instruments. What that means is, assets are backed off-chain but represented on-chain and therefore If the smart contract breaks:
⢠The legal ownership of the underlying asset may still exist.
⢠The issuer can potentially fix, migrate, or reissue tokens.
ā¢Investors may still have contractual claims on the real-world assets.
Each comes with different risk profiles, DeFi introduces smart contract, liquidation and market risks but is fully transparent and non custodial. RWAs reduce some of those risks but introduce issuer, custodian, and operational risks.
Thatās why
@blend_money doesnāt rely on a single yield source.
Instead, we build diversified yield baskets across multiple risk profiles and liquidity sources. By allocating across different baskets, we reduce concentration risk while maintaining liquidity for users.
When a withdrawal request comes in, users arenāt waiting for a Treasury bill to mature or an off-chain settlement process to complete. Blend rails manages liquidity across its baskets and sources, allowing redemptions to be fulfilled almost instantly while portfolio rebalancing happens in the background.
The goal isnāt to eliminate risk, every yield source has risk, the goal is to diversify it, manage it, and give users access to institutional-grade yield strategies with a simple withdrawal experience.
This is the difference, this is why
@blend_money will win.