Opinion: Stablecoins are not more profitable than the lending market.

[Viewpoint: Stablecoins are not more profitable than the lending market] Lido strategic advisor Hasu stated in response to an X user’s post that "lending DEXs like AAVE and Fluid have sufficient advantages in stablecoin issuance" that the idea that stablecoins are more profitable than the lending market is one of the biggest misunderstandings in DeFi. Both the lending market and stablecoins borrow money from A and lend it to B, earning interest rate spreads in the process. Stablecoins do offer implicit convenience benefits such as global transferability, but these benefits are limited to stablecoins with deep global liquidity and an accepting network, such as USDT and USDC. Everyone else is competing for the same scarce capital pool and increasingly needs to pay interest to lenders. For new stablecoins entering the market, there are actually only two advantages - superior distribution (allowing you to borrow at a lower amount) and superior ALM (allowing you to lend at a higher amount). Which one does AAVE and Fluid have?

AAVE6.67%
FLUID-2.13%
USDC-0.01%
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