Why risk a smart contract exploit when safe US Treasuries pay better crypto yields?

The Federal Reserve raised its target range by 25 basis points to 3.75%-4.00% on Sept. 16, pushing the one-year Treasury yield to 4.45% the same day and pressuring crypto lending yields.That move lifts the return available to anyone willing to hold nothing riskier than government debt, setting a fresh benchmark for crypto lending yields to measure against.Coin Metrics found that USDC lenders on Aave earned an average of 31 basis points less than that one-year Treasury throughout the period it studied in 2026. The Aave yield fell short of the Treasury rate in 78% of the intervals measured across that same window.That gap predates the Fed decision, and the more useful question is what a Fed hike does to the calculation from here.Yield / BenchmarkCurrent or Studied LevelWhat it MeasuresWhy it MattersFed target range3.75%–4.00%Policy-rate floorRaises the base return available in dollar markets1-year Treasury4.45%Low-risk dollar alternativeMain opportunity-cost benchmark for investorsAave USDC vs 1-year Treasury-31 bps avg.Stablecoin lending spreadShows Aave lenders did not consistently earn a premiumAave underperformance frequency78% of intervalsConsistency of yield shortfallShows the ...