Fonship is a joke
Fonship is a joke
AAVE-0.55%
COMP-0.08%
SNX+0.57%
UNI+0.27%
YFI-0.54%
LINK+0.28%
DAI+0.01%
USDC0.00%
PYUSD+0.06%
🧵 1/ What if I told you that crypto already has its own version of QE and rate cuts? It’s happening live. It’s called Decentralized QE — and it’s powering altcoin liquidity without the Fed. Let me explain 👇
Gallery 1
2/ In TradFi, when central banks cut rates or do QE: •Borrowing becomes cheaper •Liquidity flows to risk assets •Stocks, housing, and startups rally This is how bull markets are engineered.
3/ In crypto, there is no central bank. But we do have: •🪙 Stablecoins (USDC, DAI, FDUSD, PYUSD) •🧠 Lending protocols (AAVE, Compound, Spark, Morpho) •🔁 On-chain leverage + DeFi loops Together, these form on-chain monetary policy.
4/ When stablecoin supply increases + DeFi lending rates drop… …it acts like a rate cut. Borrow becomes cheap. Capital rotates. Alts run. That’s Decentralized QE in action.
5/ Just like the Fed prints reserves… On-chain QE happens when: •Stablecoin whales supply idle capital •Borrowing demand grows (for perps, farming, DAOs) •Lending yields compress = Liquidity unlocks, price moves.
6/ During 2020–2021: •Stablecoin supply exploded •AAVE & Compound lending surged •Alts like LINK, SNX, UNI, YFI 10x’ed This wasn’t just a “crypto bull run” — it was on-chain credit expansion.
7/ So what should you watch now? 👇 ✅ Stablecoin supply growth ✅ Lending APRs trending lower ✅ TVL rising in AAVE, Compound, Spark ✅ Borrowing utilization going up This is your on-chain Fed Watch.
8/ The best part? This system is global. Borderless. Permissionless. While TradFi waits for Powell… Crypto already has the rails to reprice risk in real time.
9/ TL;DR •Stablecoins = on-chain money •Lending = on-chain credit •APR compression = rate cut •DeFi boom = liquidity expansion Welcome to Decentralized QE. Do whatever your gut says.
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.