The Target Market

80% of ETH has never touched DeFi. True Freeze aims to activate this ETH - we might not be the highest yield, but we want to be the simplest and risk-minimized.

In any market, higher risk generally has higher yield and lower market caps. This is why yield must be adjusted for risk.

We see this in DeFi today. Big blue-chip protocols like AAVE hold billions of dollars of ETH both for collateralized loans (e.g., borrowing USDC) and because it's a well-audited place to store ETH for non-zero yield. Smaller protocols with less audits and more complexity hold less ETH.

But (using April 2022 numbers) the vast majority of ETH isn't in DeFi at all. There's >110M ETH. And blue chip protocols hold only 100,000s of them.

Data as of April 2022. Numbers are much lower at time of writing (July 2022).

This is not because blue-chips are untrustworthy- they're great and will likely grow a lot as regulations codify how institutions can self-custody assets and use these protocols.

It's because they have risks above the intrinsic risk of holding volatile assets like ETH including: Oracles, Liquidations, Collateral, Smart Contract risks, and Contract Upgrade/Migration risks. True Freeze has no oracles, no liquidations, no lending/borrowing, no contract upgrades. By reducing the risks to only smart contract risks, it aims to appeal to 1,000,000s of ETH and serve as the benchmark rate for all of DeFi.