The Opportunity

Global Assets Under Management (AUM) is Set to Hit Almost $150 Trillion by 2025, and Savings in the U.S Alone Is Over $9 Trillion—While DeFi AUM is Just $56 Billion.

Private & Personal Savings

The total value of savings in America alone totals over $9.34 trillion, and it has been rising rapidly.

In the US, gross private savings total $4.64 trillion, while personal savings total $1.06 trillion (Statista).

People are also saving more of their earnings.

Those savings are predominantly owned by older generations. which is why it is so crucial DeFi becomes as user friendly as the financial services those older generations have become accustomed to.

Inflation

Banks lend out this money to borrowers and charge a high APY, but then only give a small APY to the owners of that money.

DeFi Lending

In DeFi, however, depositors are earning up to 20% APY on their deposits, because the middle man—the banks—don't exist, and borrowers are borrowing directly from lenders via decentralised applications built on smart contracts.

Lending in DeFi is just one way in which people can earn a yield on their savings.

DeFi is an engineer led space where amazing products and services are being pioneered… but being engineering led rather than design or product led, they are notoriously difficult to use. They are designed by, and for, hardcore crypto enthusiasts.

There was a time when this is what it was like sending emails. Only the most hardcore computer science nerds knew how to do it. And now sending and receiving emails is more common than sending physical letters.

Then Hotmail, Yahoo mail, Gmail, came along and made email simple to use, and it spread like wild-fire.

A platform that makes DeFi as simple as online banking could spread with the same intensity and bring trillions of dollars into DeFi.

As of writing DeFi has $217 billion locked up, with most popular application being providing liquidity to Decentralised Exchanges (Dexes), followed by Lending.

Assets Under Management (AUM)

Dwarfing DeFi, the total value of assets under management (by money managers working with funds and financial institutions) is currently over $110 trillion, and set to rise to almost $150 trillion by 2025. How much of that is open to diversifying into DeFi?

Compared with private and personal savers who earn tiny APY keeping their money in bank accounts, investors typically enjoy far greater returns—more than doubling their investment every 10 years.

DAO Treasuries

At $11 billion DAO treasuries (DAO AUMs) are small compared to DeFi AUM and minuscule compared to CeFi AUMs, but how much of that would DAO members want to be managed in a DeFi fund?