TREE NEWS reports: Two Prime CEO Alexander Blume said the bitcoin rewards offered by Babylon and Stacks function as “VC-funded subsidies” that pay out less as deposits grow. He pointed to a vault Two Prime runs on Pareto that lends to borrowers offchain as an alternative source of yield for bitcoin holders.
Two Prime CEO Calls Babylon, Stacks Bitcoin Yields ‘VC-Funded Subsidies’
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AI take
Blume's critique reframes bitcoin yield products as incentive programs whose economics weaken with scale, a structural point rather than a swipe at any single protocol. It lands hardest on holders weighing protocol-native rewards against credit-based yield, where the tradeoff is transparency and counterparty risk rather than headline rates. Whether the subsidy framing gains traction as deposits keep growing is the open question, along with how Babylon and Stacks respond to the comparison.
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