I remember chatting with Ethena some time ago, curious if, with their TVL exceeding 6B, they would shift their focus towards asset security rather than absolute yield. The answer I received was that currently about 50% of the assets would choose to temporarily not adopt strategies and would expand their business to different types of asset forms, with asset security always being the top priority. To this day, Ethena resembles an asset management protocol more than a Quant Fund, so users with stronger yield expectations will choose alternative products.

Resolv currently offers a stablecoin yield of 14.4% and an insurance pool yield of 26%, which is above the market's risk-free yield level. The logic of the protocol is quite simple: all assets are deployed in ENA, plus an insurance pool that bears risks and takes 30% of the returns. Protocols of this kind of arbitrage model seem simple, but they are actually as challenging as running a Quant Fund; every bit of yield difference reflects the trading abilities of different teams. Similarly, teams with stronger trading capabilities can incorporate more modules into their strategies, including a wider range of asset classes (BTC, ETH, and even altcoins), lending, LP strategies, etc., allowing them to maximize their returns under controlled risks.

With the expansion of the Crypto market, especially now with convenient OTC and the relaxation of banks' restrictions on Crypto asset inflows and outflows, risk-averse funds have more opportunities to enter the Crypto market for wealth management, creating opportunities for more straightforward DEFI yield solutions. Due to the high volatility and cyclical nature of the Crypto market, the yields of low-risk strategies will be amplified, and teams with different risk appetites and varying strategy complexities will have business opportunities. Under this premise, ENA chooses to expand outward, seeking different asset forms and building product lines. Resolv, on the other hand, chooses to focus on enhancing yields and adopts the form of an insurance pool to price risks.

As the total supply of stablecoins exceeds 250B, regulations relax, and a large number of cross-border payment companies enter the crypto space through OTC, we have already seen a wave of yield-seeking capital flowing into Defi protocols, boosting Ena's TVL. So with Resolv's launch and the subsidy flywheel turning, will there be a wave of funds transferring over to create a hype?