Enhanced capital efficiency and yields achieved, Andre Cronje notes

Enhanced capital efficiency and yields achieved, Andre Cronje notes
Cronje outlines crypto yields and efficiency

Andre Cronje, founder of Flying Tulip and former Chief Technology Officer and board member of Sonic Labs, reported yield rates for several assets such as ftUSD at 8.82%, BTC at 0.70%, wstETH at 2.28%, USDT at 3.54%, ETH at 1.67%, and USDC at 3.70%.

Cronje stated that higher capital efficiency is enabled through maintenance margin rather than loan-to-value (LTV), and that lower haircuts are achieved via request-for-quote (RFQ) based liquidations instead of liquidation bonuses. He added that increased yields are supported by lending, margin, ftUSD, and total return swaps.

Cronje has previously outlined methods for 5x leveraged ETH exposure while earning a 2 percent yield on the ETH position. He has also discussed FT’s unique collateral model featuring a built-in floor, which could extend to new categories of tokenized real-world assets, in a separate note on collateralized assets. These developments reflect his ongoing focus on capital efficiency and yield generation in digital asset markets.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.