Yield Compression Drives 50% TVL Decline in USDe Amid Onchain Growth

Despite increased blockchain activity, USDe's total value locked fell sharply due to reduced yields impacting investor returns.

USDE

Summary

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Terms & Concepts
  • Yield Compression: A reduction in investment returns caused by narrowing interest rate spreads or lower yields.
  • TVL (Total Value Locked): The total value of assets deposited in a DeFi protocol, indicating its scale and user trust.
  • Onchain Usage: Activity conducted directly on a blockchain network, including transactions, smart contract interactions, and asset transfers.