Trillions of dollars are currently sitting in negative-yield bonds, with hundreds of trillions more having their purchasing power eroded by negative real rates. Meanwhile, in crypto, the Proof of Stake industry generates 6.5% annually for the $275 billion of staked capital used for verifying blockchain transactions.
What would a bond-like fixed income product that derives its yield from Proof of Stake look like? Can it be done, and what are the challenges of making it a reality? What role would such a product play in building crypto’s still non-existent interest rate markets?