DefiLlama has recently analyzed the relationship between Aave stablecoin APY, the Federal Reserve's Federal Funds Rate (FFR), and the median deposit rate of U.S. banks. According to PANews, historically, Aave's stablecoin lending rates have fluctuated around the FFR, while U.S. bank deposit rates have generally set a 'floor' for DeFi yields. When bank deposit rates approach zero, DeFi stablecoin yields may also approach zero. Several industry participants have noted that DeFi yields must compete with traditional financial deposit rates, with the portion exceeding bank rates primarily reflecting on-chain credit and liquidity risk premiums.