Competitive Analysis
Cambi's competitive position rests on several interconnected advantages that become stronger over time. Unlike simple yield aggregators or lending protocols, we're building a multi-faceted marketplace that creates network effects between Bitcoin holders seeking yield and Latin American markets offering yield.
Our primary competition comes from three categories: centralized Bitcoin yield products (like BlockFi before its collapse), other DeFi protocols attempting RWA integration, and traditional emerging market investment funds. Against centralized providers, our advantages are transparency, permissionlessness, and sustainable yield sources. While Celsius promised yields through opaque strategies that ultimately failed, every Cambi user can verify their funds' location and yield sources on-chain.
Compared to other DeFi protocols attempting RWA integration, our focus on Latin American markets provides specialized expertise and relationships. While protocols like Centrifuge or Maple Finance offer generic RWA exposure, we're building specific partnerships with Brazilian tokenization platforms, understanding local legal structures, and navigating regulatory requirements. This regional focus might seem limiting but actually creates defensibility – a large protocol could copy our smart contracts but not our ecosystem relationships.
Traditional emerging market funds remain our most established competition, but they're handicapped by their structure. Minimum investments often start at $1 million, lock-up periods extend for years, and fees can reach 2% annually plus 20% of profits. Cambi democratizes access with no minimums, flexible terms starting at three months, and transparent fee structures. Our 10% performance fee only applies to yields above the base rate, aligning incentives with users.
The protocol's true moat emerges from the intersection of technical innovation and market positioning. Our Uniswap V4 liquidation hooks provide capital efficiency that makes CDPs more attractive. Our RWA sourcing relationships in Brazil give us access to yields others can't reach. Our user experience innovations like daily rebasing create stickiness traditional finance can't match. Most importantly, we're building in a regulatory gray zone that large institutions can't enter quickly – by the time regulations clarify, we'll have established market presence and user trust.
vs. Traditional Stablecoin Yields:
Mountain Protocol (USDM): 5% from T-bills only
Ondo Finance: 5.2% from T-bills
Cambi cmUSD: 14-18% from USD-denominated EM receivables
vs. Bitcoin Yield Products:
Coinbase Bitcoin Yield Fund: 3-5%, fully locked
Maple Finance BTC: 4-6%, institutional only
Cambi cmBTC: 5-8% base + liquidity premium, instant cmUSD minting
vs. Emerging Market Protocols:
Goldfinch: Complex underwriting, long locks
Credix: Limited to institutional investors
Cambi: Retail accessible, daily liquidity, unified yields
The moat deepens over time
Supply Cap Advantage: By limiting cmUSD/cmBTC supply while growing cmBRL, we maintain premium yields while competitors race to the bottom
Unified Yield Network Effects: More cmBRL users directly benefit cmUSD/cmBTC holders - no other protocol has this
Brazilian Market Lock: Our early mover advantage in USD-denominated receivables creates exclusive partnerships
Institutional Stickiness: Once funds integrate cmBTC into their stack, switching costs are high
Regulatory Arbitrage: Operating from Brazil with local partnerships while serving global users
Why competitors can't copy us
Aave/Compound: Focused on over-collateralized lending, not RWA originations
MakerDAO: Too big & slow-moving, focused on US/EU markets
Frax/Curve: Stablecoin infrastructure, not yield generation
New Entrants: Lack Brazilian relationships and unified yield innovation
The magic isn't in any single component – it's in the orchestration of Brazilian market access, unified yield optimization, and strategic supply management. By the time competitors understand this, we'll have locked in the key partnerships and user base.
Last updated