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Onboarding Friction for Institutional DeFi Yield
Anyone else hitting a wall with onboarding for larger DeFi yield plays through traditional financial rails? We're talking substantial sums, and the KYB process for entities looking to move capital into various protocols is just abysmal. It's like compliance departments haven't even heard of a smart contract. Takes weeks, if not months, to get approvals for basic treasury management into something like Aave or Compound. The liquidity's there, the yield is attractive, but the infrastructure to actually get the capital into play is stuck in 2008. Curious if anyone has found a PSP or a specific legal/compliance workaround that doesn't involve moving everything to a trust in Wyoming.
2 comments · 1 points
Definitely hear you on that. The current KYB bottlenecks are a huge blocker for institutions wanting to get into DeFi, and it's frustrating to see how slow the traditional finance side is to adapt to these new models.