Yield Comparison: DeFi vs Traditional Finance
All strategies use the same borrow cost from Aave V3 (3.00%) for an apples-to-apples comparison
Investment Amount
$
Key Insight
Most traditional investments lose money after accounting for borrow costs, while the DeFi arbitrage strategy generates a positive net yield. This is because DeFi supply rates for certain stablecoins exceed the borrow cost.
Key Considerations
- All strategies assume borrowing USDT at 3.00% from Aave V3
- DeFi yields are variable — the borrow and supply rates change hourly
- Traditional rates shown are gross yields; actual returns after borrow cost may be negative
- DeFi carries smart contract risk not present in traditional investments
- Treasury and savings rates are backed by the US government / FDIC
- Tokenized RWAs combine on-chain access with real-world asset backing
For informational purposes only. Not financial advice. Traditional rates are approximate averages as of March 2026.