The bear market doldrums may have hit, but we believe there’s no better time to be doubling down on researching and discovering new DeFi primitives that can scale. I just published a post on Twitter about why Nomatic and I keep doubling down on DeFi, why we’re more focused than ever on uncovering new DeFi through our DeFi Frontier series and doing due diligence on more mature DeFi teams with tokens well placed to accrue value through our Revenue Meta series.
However, one major issue that plagues our DeFi economies is that DeFi-native yields seem to collapse in every bear cycle. It makes sense, DeFi is about composability so every asset or primitive is connected and when one bit of demand or liquidity dries up, there’s a daisy chain of impact felt by other DeFi protocols and investors. This is why we desperately need less dependence on the reflexive crypto markets and more on exogenous yield sources.
A new DeFi protocol expected to launch in May called Tori, which generates a yield from somewhere else. The yield is a strategy that's been running in TradFi at $50B+ scale for decades, uncorrelated with crypto,
In a new DeFi Frontier episode of The Edge Podcast, Tori Founder Samed Düzçay, walks us through how Tori's hedged FX carry trade works: borrow in low-rate currencies like USD, lend in high-rate emerging market currencies like Turkish Lira and Egyptian Pounds, and hedge the FX exposure fully back to USD. The spread that survives after hedging is 8-15% yield, generated from real economic activity in global money markets, completely uncorrelated with crypto cycles, liquid, and verifiable onchain in real time through Accountable. Their two-token model, trUSD and strUSD should integrate directly into Morpho, Pendle, and Curve for anyone who wants to loop or trade the yield further once live.
Tori is anticipated to launch by end of May with a pre-launch vault. Listen to the latest Edge Podcast for more details on Tori!
| CONTINUE BELOW FOR PODCAST LINKS |
Thanks to our sponsors and who make this content free for you to enjoy!
Listen below on Spotify, Apple, and YouTube or check out our Linktree here!
🔗 Guest Links 🔗
► Tori website: tori.finance
► Tori on X: x.com/tori_finance
► Sam on X: x.com/0xNox_eth
📺 More Episodes You Might Enjoy
DISCLAIMER: Nothing written in The Edge Newsletter or said on The Edge Podcast is a recommendation to buy or sell tokens or securities. This content is for educational and entertainment purposes only. Nothing shared here is financial advice. Any views expressed in our content are solely the opinion of that writer, host, or guest. Always do your own research. DeFi Dad, Nomatic, and guests may have positions in the assets or other matters discussed in this content.
