Crypto Lending Yields Trail Behind Treasuries Amidst Fed Rate Hike

The recent Fed rate hike has pushed up the one-year Treasury yield to 4.45%, making it a more attractive option for investors than some crypto lending yields.

A study by Coin Metrics found that Aave's USDC lenders earned an average of 31 basis points less than the one-year Treasury yield throughout 2026, with this gap occurring in 78% of intervals measured.

Anthony DeMartino, co-founder and CEO of Sentora, notes that correlation between SOFR and CDOR has been very low, so a Fed hike should not be expected to pull on-chain rates materially higher.

DeMartino argues that the premium over CDOR is where smart contract, liquidity, and credit risk are compensated, but there is no standard rate that can be applied here.