DeFi needs higher certainty, not higher yield

💡 DMK Insight

High yields in DeFi are irrelevant if institutions can’t rely on transaction predictability. As institutional players eye DeFi, they’re looking for more than just attractive returns; they want execution certainty. This shift could reshape how liquidity flows into the market. If institutions start favoring platforms that offer reliable transaction processing over those with high yields but high volatility, we might see a significant reallocation of capital. Traders should keep an eye on platforms that are enhancing their infrastructure to support this demand. The focus on execution certainty could also impact related assets, particularly those tied to DeFi protocols that struggle with scalability or reliability. Here’s the thing: while high yields attract retail traders, institutions are more risk-averse and will likely steer clear of platforms that can’t guarantee transaction integrity. Watch for announcements from major DeFi platforms about upgrades or partnerships aimed at improving execution reliability, as these could signal where institutional money is flowing next.