Distorted Crypto Interest Rates

The Incentive-Adjusted Yield Framework

This report uses current on-chain data and vault structures to separate organic lending rates from incentive distortions, explain how earn vaults actually generate yield, and show why headline APYs often fail as benchmarks.

Download Report

Inside This Report

Why Headline APYs Are Often Misleading

Learn why most stablecoin yields are blended numbers that combine real borrow demand, protocol mechanics, vault strategy risk, and external incentive subsidies—and why treating them as pure interest rates leads to false comparisons.

How Stablecoin Incentives Distort the Cost of Capital

Understand how TVL growth programs can push yields above organic market levels, why this creates false signals about demand, and how incentive cliffs can trigger rapid liquidity exits and rate instability.

CDOR as a Clean Benchmark for Borrow Costs

See how CDOR provides a transparent reference rate derived from observable on-chain borrowing activity, and why separating organic borrow costs from reward-driven yield is essential for accurate benchmarking.

The Hidden Risk Inside Earn Vault Yield

Get a clear framework for identifying how vaults generate yield, including leverage loops, off-chain dependencies, and liquidity constraints—and why two identical APYs can carry fundamentally different risk.

Why DeFi and Institutional Readers Need This Report

Accurate Yield Benchmarking

Stop treating subsidized yield, organic lending rates, and vault strategy returns as interchangeable. Learn how to separate real interest rates from temporary incentive-driven returns.

Risk Transparency at the Vault Level

Understand where yield actually comes from, what risks generate it, and how hidden leverage, off-chain exposure, and liquidity constraints affect the true risk-return profile.

A Practical Decision Framework for Stablecoin Yield

Use a structured decomposition to evaluate any stablecoin vault, identify incentive distortions, adjust for strategy risk, and compare opportunities on a consistent, decision-grade basis.

Ready to Evaluate Crypto Yield With Clarity?

This report is essential for DeFi participants, risk managers, treasury teams, and institutional allocators who need to interpret stablecoin yields accurately. If you care about distinguishing organic rates from subsidized returns, understanding vault-level risk, and benchmarking on-chain interest rates correctly, this paper provides the framework.

Download Report

Download the Report Now

To access the Research Paper, please fill in the following information.

Home

Articles

Dashboards

Reports

Webinars