Daylight Launches DayFi to Tokenize Electricity Markets on Ethereum
Daylight, supported by a16z Crypto and Framework Ventures, has introduced DayFi, a decentralized finance protocol on Ethereum designed to transform electricity into yield-bearing assets. This initiative aims to establish capital markets for decentralized energy, addressing the rising power demand from data centers.
DayFi employs core tokens including GRID, a stablecoin backed by U.S. Treasuries and cash without yield, and sGRID, a yield token generated from Treasury interest alongside Daylight's solar energy revenue. Users can deposit assets into two-month-locked vaults through Upshift, with curation strategies managed by K3. The protocol lends funds against tokenized rights to energy cash flows.
Revenues generated from rooftop solar and battery systems are tokenized and distributed back to depositors as yields. These returns are financed through long-term power contracts, grid incentives, and participation in virtual power plants. Currently, Daylight operates in Illinois and Massachusetts, with plans to expand into additional U.S. markets, including California.
The DayFi model leverages crypto-native tools to coordinate capital and scale distributed energy solutions, tackling the high soft costs associated with solar installations, which account for roughly 60% of total expenses. This development is part of a wider trend toward tokenizing real-world assets such as Treasuries and solar infrastructure to create new blockchain-based capital markets.
