Ethereum is the federal government and instead of charging 30% tax it charges 1% and lets states and counties charge the bulk of the tax Security is the most mispriced asset in blockchain land federal states can make it hard for citizens to leave and few (ie US) can enforce worldwide tax - as a US citizen you pay the tax because they can use violence against you blockchains can’t and never will they are by design open source and easy to leave, so they will always struggle to grow GDP via taxation Users (builders and user aggregators) will always have an incentive to leave and go to a tax friendly jurisdiction once you get taxed any amount because they control the user. So Ethereum and others can’t tax too much I don’t see an easy solution to this problem other than being an integrated chain that owns the user relationship and can monetize the flow and enforce some control of who enters and leaves Robinhood can do this Stripe can do this Infra crypto-native providers can’t And if that’s the case then what’s the point of blockchains if you have a single entity that controls it. Databases all the way down. Robinhood is simply replacing citadel and monetizing the flow themselves via robinhood chain - as they should

rates in DeFi are too low for the level of risk $11.7B sitting in Morpho vaults today at 2-4% APY. retail is funding these markets via exchanges thinking it's a savings account. it's not. they're taking real credit risk on crypto-collateralized lending no institution accepts near risk-free rates to come on-chain not all vaults are created equal. same 2-4% yield but completely different risk profile (different curators, collateral, LLTVs). retail picks the highest number. farmers will farm back in the day >100% APYs in DeFi made sense. you were compensated for the risk you were taking. DeFi is a different animal today but vol, historical dislocations, and looping strategies on crypto collateral still demand at least 300-400 bps above risk-free. we're nowhere near that. @LucaProsperi ran the math (see below). tldr - fair value spread on ETH/BTC-collateralized lending is 250-400 bps above risk-free. observed rates are a fraction of that last cycle we saw a lot of retail pour savings into algo stablecoins promising "risk free" yield. this cycle vaults have a lot of demand but they are mispriced for the level of risk. you're trusting someone to LP into vaults and trust the manager will manage position at least private credit earned you 12-16% go read this: