Web3 yield

Web3 isn’t just “crypto”—it’s a capital market running on-chain.
Its macro foundation mirrors traditional economics: capital supply (TVL, staking) meets capital demand (borrowing, blockspace, leverage).
Smart contracts create an algorithmic r*, adjusting interest rates every block through utilization — no central bank required.
Each layer captures value differently: L1s (fees + MEV), L2s (sequencer revenue), DeFi (borrow rates, LP fees), apps (user capital sinks).
This forms a stacked economic architecture, not a random token ecosystem.
And Web3 yields aren’t “alpha” — they’re mostly risk premium for smart contract, liquidity, volatility, and bridge/oracle risk.
As this risk premium compresses through audits, decentralization, and safer primitives, Web3’s base rate stabilizes.
That’s when the ecosystem becomes a credible, institutional-scale financial system.