DayFi and the Emergence of Electricity as a Yield-Bearing Asset

The convergence of decentralized finance (DeFi) and renewable energy infrastructure is unlocking a new asset class: electricity as a yield-bearing asset. At the forefront of this movement is Daylight Energy, a company leveraging blockchain technology to tokenize real-world electricity generation and storage. With a $75 million funding round in late 2025, Daylight is scaling its DayFi protocol to connect institutional and crypto-native capital with decentralized energy systems. This innovation is not just about greening the grid-it's about redefining how capital flows into renewable infrastructure, offering investors a direct stake in the future of energy.

Daylight's $75M Funding and Strategic Expansion

Daylight's recent $75 million funding round, led by Framework Ventures and supported by Turtle Hill Capital, marks a pivotal moment in the energy-DeFi space. The capital is split into $15 million in equity financing and $60 million in project development capital, with a clear focus on scaling Daylight's decentralized energy network. The company is deploying this funding to launch energy subscriptions in Illinois and Massachusetts, enabling homeowners to install solar and battery storage at no upfront cost. In exchange, participants receive lower, predictable energy bills and contribute to grid stability by acting as micro power plants.

This model is underpinned by a project finance structure secured by cash flows from infrastructure assets, reducing reliance on Daylight's balance sheet and offering institutional investors a transparent, asset-backed investment vehicle. The hybrid approach-combining traditional and decentralized finance- addresses the limitations of subsidy-driven renewable energy models while tapping into the 24/7 global crypto market for faster capital deployment.

Tokenizing Electricity: The GRID/sGRID Model

At the heart of Daylight's innovation is its GRID and sGRID token model, which tokenizes electricity revenue into tradable, yield-generating assets. The GRID stablecoin represents the value of electricity produced by Daylight's solar and storage systems, while sGRID is a yield-bearing token that entitles holders to a share of the revenue generated by these assets. This system mirrors the DeFi ethos of composability, allowing investors to earn passive income through on-chain mechanisms without intermediaries.

The partnership between Daylight and Plasma in Q4 2025 further solidified this model. GRID tokens are now fully backed and redeemable by M0 (a stablecoin collateralized by U.S. Treasury securities), while sGRID provides on-chain exposure to electricity yields. This integration with regulated stablecoins enhances institutional confidence, as 90% of the stablecoin market is now fiat-backed, with a total market capitalization exceeding $252 billion.

The $50M Pre-Deposit Vault and Institutional Yield Strategies

To accelerate capital deployment, Daylight launched a $50 million pre-deposit vault in Q4 2025, offering institutional and crypto-native investors incentives to lock stablecoins like USDS or USDT. Participants receive a 10x points multiplier and a "Time-in-Protocol" boost, encouraging early participation. The vault structure locks funds for two months, with fees estimated at $28.95 million, reflecting the project's confidence in its ability to generate returns.

Institutional investors are leveraging this structure through sophisticated strategies. For example, stablecoin lending platforms like Aave and Compound offer variable APYs ranging from 2% to 14.11%, while cross-chain yield optimization and liquidity pools (e.g., USDC-MIM pools with 38.72% APY) further diversify risk and returns. The regulatory clarity provided by the GENIUS Act has also spurred innovation, with application-specific blockchains like Tempo and Arc enabling sub-second finality and opt-in privacy.

Strategic Advantages and Market Position

Daylight's approach is uniquely positioned to capitalize on three trends:1. Real-World Asset (RWA) Integration: By tokenizing electricity, Daylight bridges the gap between physical infrastructure and digital finance, enabling global capital to flow into localized energy projects.2. Regulatory Tailwinds: The GENIUS Act and the rise of regulated stablecoins have created a framework where institutional investors can engage with DeFi without sacrificing compliance.3. Market Demand: With global energy demand rising and traditional subsidy models faltering, Daylight's decentralized model offers a scalable, cost-effective alternative.

Conclusion: Why Investors Should Act Now

For institutional and crypto-native investors, Daylight represents a rare opportunity to participate in a dual transition: the shift to renewable energy and the evolution of DeFi. The $75 million funding round, coupled with the GRID/sGRID token model and the $50 million pre-deposit vault, creates a flywheel effect-scaling infrastructure while generating yields. As DePIN (Decentralized Physical Infrastructure Networks) expands, with over 13 million devices contributing to these networks daily, the value of electricity-backed assets will only grow.

The time to act is now. Daylight's model is not just about earning yield-it's about building the infrastructure of the future.