In a recent thread on X, Lily Liu, President of the Solana Foundation, chimed in on a post by Patrick Collison, CEO of Stripe, about the evolving landscape of stablecoins and yield sharing. Liu's succinct agreement highlights a pivotal shift in finance: from banks hoarding profits to DeFi democratizing access to yields.

Collison's original post (view it here) points out how stablecoin issuers—and by extension, the entire financial ecosystem—will need to start sharing yields more equitably. He notes that in the US, the average interest on savings deposits is a meager 0.40%, with trillions earning nothing at all. In the EU, it's even slimmer. This status quo, he argues, is unsustainable as consumers demand better returns on their money.

Liu builds on this by contrasting traditional banking's model with DeFi's potential. In fractional reserve banking—where banks lend out most of your deposits while paying you little to no interest—they capture the "lion's share" of yields from both deposits and loans. This system has been the backbone of credit creation for centuries, but it's inherently skewed toward institutions.

Enter DeFi, or Decentralized Finance, which operates on blockchain networks like Solana or Ethereum without central intermediaries. Here, users can directly participate in credit markets as lenders (buy side) or borrowers (sell side). This opens up a spectrum of yield opportunities across various risk levels and asset types, available to anyone with an internet connection and in any amount—no minimum balances required.

As Liu puts it, "Users win." This isn't just hype; it's about real empowerment. In DeFi protocols, yields from lending stablecoins or providing liquidity can reach double digits, far surpassing bank savings rates. Platforms like Aave or Compound allow everyday people to earn interest by supplying assets to lending pools, with returns distributed transparently via smart contracts—self-executing code on the blockchain that eliminates the need for trust in a middleman.

The conversation sparked replies echoing this sentiment. One user likened banks to analog phones in a world of WhatsApp, emphasizing how outdated and inefficient traditional systems feel. Another noted that DeFi "slices the pie for all," redistributing what banks once kept.

This discussion ties into broader trends in crypto, including the rise of yield-bearing stablecoins. After regulatory pushes like the GENIUS Act (aimed at curbing rewards on stablecoins), industry voices are advocating for consumer-friendly models. For blockchain practitioners, understanding these shifts is crucial—DeFi isn't just an alternative; it's evolving into a more inclusive financial infrastructure.

At Meme Insider, while we often dive into the wild world of meme tokens, these foundational DeFi concepts underpin many viral projects. Meme coins frequently leverage DeFi mechanics for liquidity and yield, making threads like this essential for staying ahead in the ecosystem.

Whether you're a seasoned trader or new to crypto, keeping an eye on leaders like Liu and Collison can provide insights into where finance is headed: toward a more equitable, user-centric model powered by blockchain.