CryptoSlate analyzed that while the US Federal Reserve raised its benchmark interest rate by 25bp to 3.75-4.00% on September 16 (local time), DeFi stablecoin deposit yields may not rise in tandem. On the same day, as the yield on 1-year US Treasury bonds rose to 4.45%, the benchmark for comparing cryptocurrency deposit yields also increased. According to CoinMetrics, Aave's USDC deposit yield this year was an average of 31bp lower than 1-year US Treasury bonds and fell below Treasury yields in 78% of the surveyed period. Anthony DiMartino, co-founder of Sentora, stated that the correlation between SOFR, a short-term US interest rate indicator, and CDOR, an on-chain borrowing rate indicator, is very low, suggesting that the Fed's interest rate hike will not significantly boost on-chain rates. He added that DeFi deposit yields are more influenced by lending demand and deleveraging in the cryptocurrency market than by monetary policy.
