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Jun 8, 2023 • 8 Min Read

Investment Thesis

Given the rise in U.S. treasury yields (5.00% - 5.25% at the time of writing) and the suction of liquidity that ensued from risk assets, perhaps the most useful metric to gauge product-market fit at this stage of the bear market is Total Value Locked (TVL). Essentially, the consideration that is front and center in the minds of savvy investors is, ‘Would this investment or strategy yield better than 5% on a risk-adjusted basis?’

In our view, TVL is a direct reflection of that question - it is an investor’s expectation of return for locking their liquidity in a sp...

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