The Economics of 20% Yields: Staking, Liquidity Pools, and the Future of Saving

This article explores how decentralized finance (DeFi) mechanisms like staking, liquidity pools, and interest rate swaps can sustainably deliver savings yields as high as 20% annually. Unlike traditional banking systems that limit returns and concentrate financial power, DeFi allows ordinary savers to participate directly in value creation—essentially making everyone a potential banker. By automating functions once reserved for bankers and lawyers, blockchain networks create fairer, more efficient systems that generate meaningful wealth opportunities for households.