decentralized finance

I'm your podcast host.

And today, I'm excited to be joined by DeFi Dave.

Hey, Dave.

How are you?

So thank you a lot, and I'm excited to get this going.

Thank you for that, Dave.

For me, it's important to have a conversation that goes in a direction that makes sense, right? If you haven't heard about DeFi Dave, DeFi Dave is the head of growth of Cap, and that's an on-chain credit platform backed by Principal Protection, which is backed by Franklin Templeton.

And he's one-

[on-hold music] Welcome to The Report.

Title of today's report: Early bull confirmed, question mark? That is the question I've been waiting for some time to see this title in The Report.

It is September 23rd, 2026.

Here's the opening context that this report begins with.

when interest rates were higher that people started saying oh yeah money funds what a logical first step like at the time it was it was crazy it was you know not not the greatest idea to be able to to do that but it was just this thing where we were like let's do this because it's difficult and kind of see where we get with it uh in terms of like like next step things.

I think there's a lot of people in the market exploring different things, but as we think about what's next, we always want to think about, is there someone who's actually asking for it? Is there a demand use case for this? Because we could launch the coolest thing ever, but if no one's actually sponsoring it or buying it or interested, it doesn't really matter.

Even some of the things like private credit right now is pretty popular in the digital native space.

And there's been some products that have raised a ton of money.

Their partnership people are top tier.

So like really, really good partners for us.

Some of the businesses out there that we participate in are demand that we're on Stellar.

Others demand that we're on a different blockchain.

If it's Solana or Ethereum, right, you could stake that and generate some type of residual return or cash flow.

These other assets like Bitcoin and XRP are primarily collateral assets, and they might be able to transfer value, but there's no inherent way utilizing the infrastructure, the DeFi that exists today to be able to generate cash flow.

So how do you pull that liquidity or generate cash flow from those things? One of the strategies that we're rolling out here in September is going to be an options or collared strategy where if you had a large stock position, let's say you were an early founder in a company and you hold a large position of equity.

It's publicly traded.

option as far as Bitcoin goes as it sits today.

Dollar denominated loans are going to be somewhere between on the low end, five, six percent if you're up there and you're working with the right counterparty, all the way up to 13 to 15 percent, depending on which asset it is and how much LTV they'll give you against it.

We've worked to create some DRs or depository receipts against different digital assets so we can park those inside our infrastructure, reflect that with a counterparty, and we're working on being able to get margin against that.

to be able to then do laddered treasuries or deploy that in other low risk ways to generate cashflow or have an allocation where you're diversified into some stocks or other equities outside of the scope of your siloed position in your crypto.