The article highlights the disparity between promised yields in decentralized finance (DeFi) and the actual economic value behind them. Many DeFi protocols advertise high annual percentage yields (APYs), sometimes exceeding 15%, but these returns often stem from creating new tokens rather than generating real profit. In contrast, established markets like private credit are poised for growth, with major players forecasting a market size of $2.6 to $2.8 trillion by 2028. This shift could funnel significant capital into on-chain private credit markets, offering a more sustainable yield generation model. Figure, a company focusing on tokenized assets, has taken an infrastructure-first approach since 2018, migrating Home Equity Line of Credit (HELOC) operations to blockchain technology. This shift has allowed Figure to cut costs significantly by removing intermediaries, making it the largest non-bank HELOC originator in the U.S., with a monthly origination volume of about $800 million. Their loans boast strong borrower metrics, including a credit score range of 748-754 and a stable payment-to-income ratio, indicating a solid foundation for their operations. Figure’s Democratized Prime platform links real-world lending to digital markets by allowing homeowners to pay interest directly to investors through a transparent, tokenized system. This setup avoids reliance on token inflation for yield, instead generating income from homeowner payments, leading to an average pool yield of about 8.5%. The platform's compliance with emerging regulations, such as the GENIUS Act, could open doors for institutional investors currently barred from DeFi, enhancing the appeal of tokenized real estate credit.