In a year marked by stock volatility and mixed performances in crypto, gold has emerged as a primary safe haven for investors. However, gold does not generate income like cash or treasuries, leading to a demand for ways to earn yields in the decentralized finance (DeFi) space. Current gold-backed tokens mostly mirror the performance of ETFs and do not offer yield, which is a drawback for yield-seeking investors. To capitalize on gold's potential, innovators in DeFi must create ecosystems that enable tokenized gold to be actively traded, borrowed, and lent. Furthermore, leveraging liquidity mechanisms could help integrate these tokens into yield-bearing strategies, enhancing their appeal. This evolution is timely as governments increasingly endorse digital finance, potentially boosting public interest in gold. DeFi may ultimately bridge traditional and digital finance, transforming gold from a mere store of value into an income-generating asset, thus advancing its relevance in the modern financial landscape.

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