Connecting DeFi with TradFi

on YouTube ↗21m

" summary

3F builds a one-click leverage primitive on Morpho using bridge facilitators to mimic flash loans in the real world, solving RWA settlement delays (T+1) that otherwise make 5x take 20 days to loop. A FalconX private credit SPV tokenized by Pareto becomes collateral for Morpho lending, enabling up to 6.5x leverage and delivering >20% real yield at max while Morpho’s ecosystem (and its $175M raise) provides the plumbing.

AI-written summary · about

" chapters (39)

1. 0:00Introduction
2. 0:39Sonya's TradFi Background and Steakhouse
3. 1:08Launching the First Morpho Vault
4. 1:37Why TradFi and DeFi Are Complementary
5. 1:59What TradFi Brings: Underwriting and Recourse
6. 2:25What DeFi Struggles With
7. 2:59Recent Blowups: Stream Finance and Resolve
8. 3:23Where TradFi Benefits What DeFi Lacks
9. 3:55The Challenges Facing TradFi Asset Managers
10. 4:27Why Leverage Is Gated to Institutions
11. 4:54What DeFi Has Already Solved
12. 5:23Why TradFi Wants to Come Into DeFi
13. 5:53The Hockey Stick Growth of RWAs
14. 6:31Why Issuance Is Now Solved
15. 7:07Learning From How Treasuries Are Used
16. 7:32The Many Use Cases of Treasuries
17. 8:05Hedge Funds and Yield Strategies
18. 8:29Creating Higher Asset Velocity
19. 9:06Why 3F Targets the Leverage Carry Trade
20. 9:33How Looping Works
21. 10:05The Math of Amplifying Yield With Leverage
22. 10:32Why Looping Breaks for RWAs
23. 11:03Why Looping Is Easy for Crypto Native Assets
24. 11:56Why RWA Settlement Delays Compound
25. 12:32Why 20 Loops Takes 20 Days
26. 13:003F's One-Click Leverage Primitive
27. 13:33Mimicking the Flash Loan With Bridge Facilitators
28. 14:34Walking Through a 5x Leverage Position
29. 14:55Leverage in One Settlement Cycle
30. 15:21The FalconX Private Credit Product
31. 15:51How the SPV Is Tokenized by Pareto
32. 16:17The Math: Over 20% Real Yield at Max Leverage
33. 16:51Why We Build Small Primitives Together
34. 17:24The Five Players in the 3F Ecosystem
35. 17:53Bringing Quality Assets to Morpho Lenders
36. 18:22Bridge Facilitators as Connective Tissue
37. 18:50Leverage LPs and Liquidators
38. 19:29Focusing on Use Cases Not Possible in the Real World
39. 20:02Closing

" related talks

• 19mWhat DeFi Is Evolving! From Primitives to Collateral MarketsMisha Putiatin · Pragma Cannes 2026
• 13mNavigating the Paradox of DeFi and CreditJakob Kronbichler · TOKEN2049 Singapore 2023
• 16mDeFi and the Blockchain MultiverseLucas Vogelsang · Polkadot Decoded 2021
• 33mDeFi Finance's New FrontierAndre Cronje, Kristen Stone · ETHDenver 2021
• 15mATM DeFiLottfi Zaouini · TOKEN2049 London 2022
• 18mUnlocking The Ultimate Support For Etherlink ProjectsBernd Oostrum, Dmitry Kovalevskiy, Iakov Levin, Nicolas Streschinsky · TezDev 2024
• 15mReal-World Assets Meet DEX: Exploring the Future of DeFiHenry Zhang · TOKEN2049 Singapore 2023
• 23mProtocol Layer: DeFi and BeyondWilliam Barnes, Grace Kwan, Edward Zuo, Dominic Tsang · Solana Breakpoint 2021