Penn State researcher finds crypto lending rates tied to U.S. Treasury yields
Siddharth Bhambhwani of Penn State published analysis showing decentralized finance borrowing rates follow traditional U.S. Treasury yields from January 2023 through March 2026.
Study compares two financial markets
The researcher examined deposit and borrowing costs on the Aave platform against government bond returns. This comparison covered a period spanning three years of market data. The analysis appeared in the journal Finance Research Letters.
No direct link exists between systems
Traditional banking institutions do not manage these cryptocurrency transactions directly. Computer programs known as smart contracts handle the peer-to-peer lending instead. Despite this separation, the data shows a clear influence from bond markets.
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