DeFi’s Shadow Banking System Exposed: Rho Protocol CEO Reveals Crypto’s Secret Rates Market
Wall Street’s quants thought they cornered the yield game—until DeFi builders started rewriting the rules. Rho Protocol’s Alex Rvykin pulls back the curtain on crypto’s opaque interest rate markets in Blockcast 61.
The Invisible Engine Driving DeFi
While TradFi banks still run on 1970s infrastructure, protocols like Rho are creating a parallel system—one where algorithms set rates in real time, and anyone with a wallet becomes a market maker.
Why Your Bank’s ’High-Yield’ Account Looks Pathetic
The numbers don’t lie: Even after the 2022 crash, crypto-native lending platforms consistently outperform traditional savings products by 3-5x. But as Rvykin warns, ’This isn’t your grandma’s CD—volatility cuts both ways.’
The Cynic’s Corner
Of course, the SEC will probably ban this innovation right around the time Jamie Dimon launches JPMorganCoin with identical mechanics. Welcome to financial ’progress.’
In this episode, host Takatoshi Shibayama speaks with Alex Ryvkin, founder of Rho Labs, about the launch of Rho Protocol, the first institutional-grade market for crypto interest rates. Alex explains the significance of "crypto-native" rates like staking yields and perp funding rates, highlighting the extreme volatility of the latter and the need for hedging tools.
He explains how Rho Protocol enables traders to manage funding rate risk, enhance basis trading strategies, and potentially shape the future of crypto lending. Alex also shares insights on the market’s evolution, feedback since launch, and the anticipated growth of the crypto rates market, drawing parallels with the massive traditional finance rates market.
Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama. Previous episodes of Blockcast can be found here, with guests like Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on our recent shows.
🎙️ 🎙️ This podcast provides commentary and discussion on cryptocurrency and related topics. It is intended for informational and entertainment purposes only and should not be construed as financial advice. Guests appearing on this podcast may discuss companies or strategies, but these discussions are not recommendations to buy, sell, or hold any particular asset or pursue any specific strategy. The hosts and guests are not financial advisors, and listeners are urged to consult with a qualified professional before making any investment decisions. Investments in cryptocurrency are inherently risky, and you could lose money.
