Two Prime CEO Calls Bitcoin Yields From Babylon and Stacks ‘VC-Funded Subsidies’
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Two Prime CEO Alexander Blume characterized the bitcoin yields offered through Babylon and Stacks as "VC-funded subsidies," arguing that payouts to depositors shrink as more capital flows into the protocols. He pointed instead to a vault Two Prime operates on Pareto that lends bitcoin to offchain borrowers as an alternative source of yield. The critique matters because Babylon and Stacks have become flagship venues for putting idle bitcoin to work, and their incentive-driven returns have helped attract deposits. Watch whether yields compress further as total value locked climbs, and whether offchain lending venues like Pareto's vault draw depositors seeking steadier returns.
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Named in this story
Two Prime, Alexander Blume, Stacks (STX), Babylon, Pareto
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