There's something that took me quite a while to realize.
If 90% of BTC yield comes from crypto, then when crypto slows down, almost every strategy is affected simultaneously.
At first, I didn't think it was a big deal. But the more yield sources I looked at, the stranger it seemed: many strategies looked different on the surface, but ultimately reacted to the same market conditions.
That's when @Bedrock RWA Vaults piqued my curiosity.
Most BTCFi currently revolves around yields generated within crypto. That works well when the market is favorable. But when liquidity decreases or speculative activity slows down, many yield sources weaken simultaneously.
The problem isn't the level of yield.
The problem is that the source of the yield is too similar.
That's why Bedrock became noteworthy to me. Instead of just seeking additional yield from purely crypto activities, Bedrock RWA Vaults opens up the possibility of connecting Bitcoin capital with income streams originating outside of crypto.
This reminds me of how firms like BlackRock ($10T+ AUM) and Apollo ($700B+ assets) access real-world income-generating assets. Bedrock is bringing some of that thinking closer to Bitcoin capital.
For many years, Bitcoin has been one of the largest capital pools in the market, often exceeding $1 trillion. But for much of the time, that capital has primarily circulated within crypto, essentially flowing in a closed system. Bedrock is trying to open up another direction.
Bedrock isn't just bringing BTC into more strategies; it's building a bridge between Bitcoin capital and off-chain yield.
If this approach continues to expand, Bedrock's value may not lie in higher APY. It lies in Bedrock helping BTC access yield sources outside of crypto, where returns aren't entirely dependent on the same 24/7 crypto cycle.
For me, that's the biggest significance of Bedrock RWA Vaults. Not just another yield source for BTC, but another yield source coming from a completely different source.