Cofounder of
@infiniFi, Matthew Evans explains how bringing fractional reserve banking onchain unlocks higher yields for crypto
"If you have $1,000 and go to the bank, they don't take it and put it in a safe with your name on it. They keep a fraction of it, and the rest they put into an investment vehicle"
"We're taking that same principle and bringing it onchain".
"We take a portion of liquid users' deposits and deposit it into duration assets, which earn more yield"
"Thatās the secret unlock Infinify brings: taking what TradFi has done for years, bringing it onchain, and implementing it on the blockchain"
"It unlocks higher yield across the board. That additional capital in longer-duration assets increases the returns we make with the same amount of money in the pool"
"Which means we are able to give more return to both the liquid user and the locked-up user".