Liquidity provider yields drop more than DeFi protocols as USDT supply increases across Arbitrum

    The Defi Pulse Monitor reports that a liquidity provider yield drop has affected more DeFi protocols than arbitrage opportunities across Arbitrum as USDT supply increases.

    Capital efficiency metrics show how real-world asset tokenization is reducing yields on lending platforms, with protocol activity declining from historical peaks while maintaining viability in traditional finance-linked markets rather than seeking speculative upside through pure cryptocurrency trading volatility alone.