I’m proud to announce that we’re launching V3 of the Demether Alpha app. The big changes are that we’re expanding the asset universe, introducing a new strategy, and strengthening user protection across the experience.

This comes just weeks after V2 went live. In context, it’s been seven months since we started building Demether and four months since V1 launched. We’re moving quickly because the opportunity is real: bringing the 750M plus daily stock traders in a $120T plus market onchain.

And the pace of the industry only makes that more urgent.

Competition is picking up, interest is rising, and the ecosystem keeps moving fast. Our partner xStocks has just wrapped a major hackathon, and Solana’s Colosseum recently concluded what it described as the world’s largest online crypto hackathon. 

At the same time, tokenized asset markets have continued to scale rapidly, with the latest DeFiLlama data placing tokenized assets at $36 billion today, up from $26 billion since the beginning of the year. 

It would be easy to miss how quickly this is all changing.

Through all of it, our focus stays the same. We’re building for people who want familiar assets, clear strategies and an experience that feels closer to a polished fintech product than a typical crypto wallet.

So let’s dig into what’s changed in our latest iteration.

First, we’re adding $GOOGL, $AAPL, $HOOD and $MSTR, bringing our xStocks token asset list to 10, plus USDC. 

Secondly, we’re adding a new strategy: lending. When users select this strategy, Demether deposits the stock token into Kamino where it may be loaned to another user if they put up another (overcollateralised) asset to borrow your stock. However, given supply yields are currently low (mostly 0%), we manage a slightly more complex strategy which borrows stablecoins against your stock position to be reinvested into an uncorrelated market at a higher rate. You net the difference in rates as yield, and of course we automate the strategy as well as the risk that rates move against you. 

Not all stocks are eligible for lending and not all stocks are eligible for market-making positions (this is what we call concentrated liquidity positions that are automated in the Raydium protocol on users’ behalf). Here’s a table to give you an overview of what’s currently possible.

The reason why there is material overlap but not a perfect match is because of the constraints of available liquidity in market-making and the available market for lending. Over time, as onchain activity improves we’re convinced we’ll be able to offer more asset-strategy combinations.

The UX of course will continue to be polished but we believe we’ve addressed the minimum viable adjustments for this sprint. 

I always like to leave the community with a taste of what’s to come, because we have an incredible pipeline of ideas that we’d like to test. The big picture for us is guided by what we call the 3’P’s. I won’t go into detail on what all of them are just yet, but I can reveal that we’re looking into pre-IPO stocks. 

Yes, there has been some controversy on the legal structures and the reality of ownership in some cases but the simple fact of the matter is that we can add massive value by orchestrating yield on much-hyped names such as Anthropic, SpaceX and others that are very likely to become retail favourites post listing. Moreover, the empirical evidence on private equity fund outperformance vs. major public indices is compelling enough to believe that our users’ portfolios would do well to have some exposure. 

As a final point, nothing in this blog post is financial advice in any form. Crypto is not for everyone. Please do your own research, consider your personal circumstances, seek the advice of professionals qualified and regulated in your jurisdiction and assume that there is always a risk that you could lose all of what you invest. 

We hope you enjoy the latest launch and we’ll be eagerly awaiting your feedback! 

Yours,
Kartik

Lead Contributor
Demether 

About Demether

Demether is a high yield savings app for stocks. Simply deposit USDC, select a stock or index and swipe to effortlessly generate incredible yields on your assets. Let our platform automate your strategies and manage risks. We’re live with $TSLA, $NVDA, $AAPL, $GOOGL, the Nasdaq, the S&P500 and gold ETFs, with more assets and pre-IPO stocks coming very soon! Check us out at Demether.io and be sure to join our Telegram group for the latest information and direct contact with the team, anytime: https://t.me/demetherdefi.