The opportunity for institutional adoption of crypto is huge

We're nowhere near the 1-10% discussed by the likes of Fidelity, Van Eck, Bridgewater's founder etc.

Within that the subsector of RWAs is also distinctly underowned.

Infrastructure is of course needed but education needs to catch up.

Liquidity will soon follow.

So shat do funds need to understand?

That its easier and cheaper to form incredible strategies onchain using permissionless composability.

That means

- no legal team
- eliminating certain counterparty risks
- no negotiations for access to key data and forming partnerships

Simply plug and play for profit (or of course potentially losses).

The scope for innovation is immense: products that don't exist in the real world could also be created with ease.

Watch this space - it will surprise you.

Because different blockchain ecosystems have different opportunities for utility - ie use of the tokenized stocks - in other projects.

It's like moving your money between banks to get the best interest rates for your savings. Except, it's not dollars (or stablecoins) you're moving, it's your stocks.

Blockchains also tend to have very different communities - including the demographics of the users and their intent. So providing greater accessibility is a path to onboarding a bigger user base.

Before the xBridge was created to move Backed's xStocks between Ethereum and Solana, this was a risky and complex affair.

Secured by the decentralised nodes of Chainlink, assets can be moved with confidence.

Finally, there is a bigger picture here - it incentivises the broadening of the ecosystem of how users can deploy and earn yield on tokenized stocks beyond Solana, which has dominated liquidity.

We’ve never seen a bigcap stock chart so perfect for liquidity pooling (i.e. market-making) onchain. Let us tell you why:

BP's shares:

✅ Stay in a massive range --> which lowers potential for impermanent loss
✅ Are beautifully volatile, in part due to and unpredictable effects of oil price --> which means lots of potential to harvest trading fees within that wide range
✅ New CEO coming in so plenty of cause for trading activity in anticipation --> more trades = more fees

How we’d do it:

- Mint the xStocks from Kraken or pick it up on chain directly (when it's available - it's not today but watch socials)

- Plug it into a Raydium Protocol or PancakeSwap liquidity pool on Solana or BNB Chain

- Concentrate the range to +/-5% and expand to +/-10% around earnings, options expiry and into geopolitical events affecting oil (for example, BP's biggest move in the past couple of years is around 10% last occurring during 2024 earnings season)

We’re confident in taking home phenomenal yields in the early days beyond BP's (current) ~4% dividend yield as liquidity builds up.

What are the risks?

- the new energy strategy breaks it away from the cyclicality of oil and the stock breaks out of range (I'll be more vigilant as the stock reaches the extremities of its historical range)

- the new incoming CEO kills it (or is badly perceived) and again, it breaks out of range (I have alerts set up to warn me of news driving major volatility, prescreened for relevance)

- I can't move fast enough to shift the focus of my market making range when the share price moves significantly and I may some impermanent losses that compound (I'm automating my processes and set up to adjust the position hour by hour or even tick by tick if needed)

- Something terrible happens to the DeFi protocols I'm depending on to (always a risk to I diversify my exposure and keep a watchful eye on the relevant news)

- Volatility subsides and/or trading activity dries up on chain (I'm betting long term so I can bear with it)

No idea what we’re talking about but salivating over the idea of megacaps with incredible yields attached?

That's OK. We're building https://demether.io for you. Live now. 

Check out the webapp directly here: https://alpha.demether.io  

You're welcome.

First, our prior thesis of blockchains and associated consumer facing layers moving to focus on RWAs as the key growth vector is being validated in real time.

Let's recap why:

- Speculative options like memes and NFTs are dead. Whodunnit? Prediction markets like Polymarket and Kalshi. Why? Because binary outcomes on topics users actually understand, can align with and have an edge on are the no-brainer option to bet on.

- Altcoins are dead. This is a thesis unto itself but examine the fact that over 2 cycles we haven't really been able to top $2 trillion in combined market cap for alts. Is that all the retail/speculative money there is to bid on them? My gut says yes. Few if any retain value through the cycle. Whodunnit? RWAs.

From a retail perspective: why bother to play PvP games with magic internet money when you can play degen games with real world assets that you know, trust, understand and actually want to own long term?

The problem for alts and the solution are RWAs. If you can become a conduit for new issuances you can plug the gap in growth that alts have left. 

Secondly, we didn't expect this to happen at the wallet layer, primarily due to referencing EVM as the template for activity. Solana is a different beast on consumer onboarding and interaction. And secondly, I cared too much about social login wallets that abstract the chain. Perhaps that's the next cycle's overarching narrative.

Wallets entering the mix rather than vertical stacks (think: Robinhood App, tokenization, wallet and blockchain // or Kraken App, xStocks, wallet and INK blockchain) was beyond my vision and it creates a new opportunity.

OK so stick with me as there's an important corollary

What if wallets side-step web 2 style social experiences (a la Base app) and skip to pump.fun style video?

Then you control speculative money, legitimate, fundamentally-backed serious investments AND the distribution channel.

It's a paradigm shift in the making of how people invest.

And Demether is going to be pretty close to the action! 

On Solana, liquidity pools allow investors to earn yield through trading fees and emissions while compounding returns in a way that traditional markets simply can’t offer. 

For retail users, this becomes one of the easiest ways to enhance passive SPY returns without complex trading strategies or derivatives.

SPY tends to be one of the more stable tokenized assets on-chain as a benchmark composite index, making it attractive for conservative investors seeking low-friction yield.

Below are the top pools by liquidity for $SPY on Solana (tokenized by xStocks as $SPYx).

SPYx paired with Solana 

SPYx paired with Solana 

NOTE: *Orca APRs are based on 365 days of fees, Raydium APRs are calculated from the past 30 days of fees, while PancakeSwap APRs are based on fees generated in the last 24 hours at the time of writing.

How to take advantage of these yields

The process is straightforward, even for newcomers to Solana:

1. Set up a Phantom wallet - the default wallet for Solana users.

2. Fund it with USDC - via CEX deposit, on-ramp, or bridge.

3. Swap half into tokenized SPY - widely traded across Solana DEXs.

4. Deposit USDC + SPY into a Raydium pool - start earning yield instantly.

5. Monitor + compound rewards to boost returns.

💡You’ve effectively transformed a broad-market ETF into a yield-bearing position.

Why you’d want to earn yield on SPY

SPY’s dividend yield is modest. DeFi can increase this dramatically by adding:

• LP trading fees

• emissions

• compounding mechanisms

You still retain diversified exposure to the U.S. market - just with added on-chain income.

TradFi Alternatives: Covered Calls (sell calls while holding the underlying shares or index) / Wheel Strategies (sell puts to enter a position then calls to exit) 

✅ Pros: 

• Generates a steady premium income

• Works well in sideways markets

• Supplements existing dividends

❌ Cons: 

• Requires constant rolling and active management

• Risk of assignment

• Caps your upside if SPY rallies

• More complex than simply providing liquidity

For retail investors, managed DeFi liquidity pools offer passive access to yield without active trading.

Risks to be aware of

Even with blue-chip exposure like $SPYx, yield always comes with risk:

• Impermanent Loss - if $SPYx diverges from its exchange price

• Market Risk - tokenized $SPYx reflects S&P 500 volatility 

• Smart Contract Risk - stick to verified pools and audited protocols

• Liquidity Risk - SPY pairs currently have limited liquidity onchain 

Yield is not free money - it is compensation for taking on these risks.

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About Demether:

Demether provides frictionless access to yield opportunities on real-world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merrill Lynch, Animoca Brands, HSBC, Rocket Internet, and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Like most high-growth tech stocks, NVDA pays a near-zero dividend to its shareholders (≈0.02%). Traditionally, investors rely on price appreciation or derivatives to generate returns. However, DeFi changes this dynamic: stock tokenization and decentralised exchanges on Solana have created an alternative pathway to substantial passive yield above and beyond the traditional dividend - without the use of complex dividends or institutional-grade structured products.  

In this report, Demether Research has mapped out the on-chain liquidity landscape. Below are the top pools by liquidity for $NVDA on Solana (tokenized by xStocks as $NVDAx). 

NVDAx paired with Solana 

NVDAx paired with Stablecoins 

NOTE: * Orca APRs are based on 365 days of fees, while Raydium APRs are calculated from the past 30 days of fees. PancakeSwap and Meteora APRs are based on fees generated in the last 24 hours at the time of writing.

How to take advantage of these yields

If you’re new to tokenized equities on Solana, the process is simple:

1. Download & set up a Phantom wallet - the most user-friendly Solana wallet.

2. Fund your wallet with USDC - via an exchange, fiat on-ramp, or cross-chain bridge.

3. Swap half into tokenized NVDA - available across Solana DEXs.

4. Deposit both assets into a Raydium liquidity pool - start earning LP fees + incentives.

5. Monitor and compound rewards as desired.

💡You’ve now transformed a zero-yield growth stock into a passive-income position.

Why you might want to do this

NVDA is one of the strongest secular growth stories in markets today, but its dividend yield is effectively 0%.

DeFi allows you to turn that static exposure into a productive asset:

• Synthetic dividends via trading-fee rewards

• NVDA price exposure + passive yield

• Automated, continuous income without managing trades

• 24/7 liquidity and composability

Covered Calls / Options Writing (Traditional Alternative)

✅ Pros: 

• Consistent premium income

• Works well in sideways or mildly bullish markets

❌ Cons: 

• Needs ongoing management

• Caps upside if NVDA rallies

• Assignment & volatility risk

• More complex for non-expert investors

DeFi LPing can be a simpler, automated way to earn yield on NVDA, especially for users who don’t actively manage options strategies.

What are the risks?

Every yield source comes with trade-offs. Key considerations include:

• Impermanent Loss (IL): If NVDA’s price moves significantly relative to USDC or SOL, your position rebalances, potentially leaving you with less NVDA.

• Volatility Risk: NVDA is a high-beta stock; tokenized NVDA inherits that volatility.

• Smart Contract Risk: Stick to audited, reputable Solana protocols and official Raydium contracts.

• Liquidity Risk: NVDA pools are smaller than majors like SOL, USDC, or BTC, meaning larger trades or withdrawals can incur slippage.

📊 As always, match the risk profile to your investment horizon and tolerance.

Join our waitlist at: https://demether.io

About Demether:

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

In traditional finance, $TSLA pays no dividend — meaning holders earn nothing unless the price goes up. Sophisticated investors seeking a yield on the stock may engage in derivative strategies, such as selling covered calls, to enhance their returns, however this requires understanding of both the complex methods and risks involved. It’s not for everyone.

Bringing a tokenized version of $TSLA on chain dramatically changes the picture. Multiple new strategies open up to ordinary investors by using DeFi protocols, including lending through onchain money markets (acting like your own bank), pooling liquidity (acting as your own market maker) or even more sophisticated strategies such as leveraged looping.

We will explore liquidity pools as the most accessible strategy available for tokenized stocks issued by xStocks, an organisational alliance bringing real world assets on chain led by Kraken and Backed.fi, in this piece.

Here are the top pools by liquidity for $TSLA on Solana (tokenized by xStocks as $TSLAx).

TSLAx paired with Solana

TSLAx paired with Stablecoins

NOTE: * Orca APRs are based on 365 days of fees, while Raydium APRs are calculated from the past 30 days of fees. PancakeSwap and Meteora APRs are based on fees generated in the last 24 hours at the time of writing.

Where Do the Yields Come From?

Liquidity pools have a preset fee (typically fractions of a percent for highly liquid correlated pairs up to 1% for exotic, uncorrelated pairs) which a user conducting a swap transaction will automatically pay as their exchange one asset for another.

The fee is collected by the smart contract itself and shared between the users that have contributed liquidity to the pool (ie placed their assets into the smart contract to allow others to trade the asset onchain), and the protocol. This incentivises asset owners to deposit their assets in the platform to create utility and the developers of the protocol to maintain and improve the application, respectively.

The amount of fees a user receives is in proportion to the liquidity supplied to the pool compared to the total liquidity available. A user supplying half of all the assets in the pool will be entitled to half of the fees generated.

The more trading activity through the pool will increase the amount of fees generated for the liquidity suppliers. Typically, this is driven by a number of factors including price volatility in the asset, general market activity across crypto (ie the cycle) and overall demand for the assets in the pool.

The typical pair token for a given assets is either a stablecoin or the native gas token of the network as an often highly liquid alternative (e.g. $SOL vs. $TSLA).

How to Take Advantage of These Yields

New to Solana? Here’s the simplest route:

1. Set up a Phantom wallet — the most user-friendly wallet for Solana.

2. Buy stablecoins (like USDC) via an exchange or on-ramp.

3. Swap half of your USDC into $TSLAx — available on major Solana DEXs, or via Kraken in certain jurisdictions.

4. Deposit both assets into one of Raydium’s TSLA pools by selecting the price range and the amounts that you would like to deploy; start earning fees + rewards.

5. Monitor and compound — fees do not compound automatically, so redeem your fees and deposit them back into the pool to further enhance your returns.

What are the Risks?

For most investors, liquidity pools offer an easier route to generate returns on idle exposure, however there are a number of risks (many of which do not exist outside of crypto) that they must be mindful of before depositing their assets:

• Impermanent Loss (IL): If TSLA moves significantly vs its paired asset (e.g., USDC), your position may rebalance into less TSLA. This may not be a problem at any given moment but if the position continues to move outside of the range you have set, investors lose out on capturing the upside movement in price. The effects are also amplified to the downside as the position will accumulate more TSLA as the price declines against the paired asset. Typically, this can be mitigated by regular rebalancing of the position to recentre the range on the price.

• Smart Contract Risk: Stick to established, audited protocols to mitigate the risk of potential smart contract exploits or errors.

• Market Risk: Tokenized TSLA will generally mirror real TSLA volatility so, if the stock declines, so does your LP value. Also note that the liquidity pool price of TSLA stock could suffer temporary dislocations given it is driven by the supply/demand dynamics of the pool rather than being directly linked to traditional financing markets. Arbitrage activity may only catch up at a lag.

• Liquidity Risk: If the pool is small, large deposits/withdrawals can trigger slippage whereby the price of execution of a swap may deviate.

From our experience, as a general rule of thumb, higher yields have typically reflected a higher risk. Choose pools that match your risk tolerance.

Join our waitlist at: 👉 👉 👉 👉 https://demether.io

About Demether:

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

They now power entire ecosystems, from on-chain settlements and collateralized lending, to yield strategies and synthetic hedging mechanisms. Understanding their structure, backing, and yield potential is essential for any investor navigating DeFi in 2025.

Check out our quick rundown of your options here:

You can also view the full table here.

What’s the Difference Between Staked and Unstaked Stablecoins?

1) Unstaked Stablecoins

These are the “regular” stablecoins most people know — like USDT, USDC, DAI, or USDe.

• You simply hold them in your wallet or exchange account.

• Their value stays around $1 (or the pegged currency).

• They don’t earn yield automatically; they’re meant to be stable, liquid, and easy to move around.

• If you want yield, you need to lend, farm, or stake them somewhere else, like a DeFi pool or savings vault.

Think of them like cash in your bank account - safe, but not earning unless you put it in a fixed deposit.

2) Staked (or Yield-Bearing) Stablecoins

These are newer types of stablecoins that earn yield automatically just by holding them.

They work like this:

• You “stake” or deposit your normal stablecoin (e.g. DAI, USDe, USDS) into a protocol.

• In return, you get a staked version - like sDAI, sUSDe, or sUSDS.

• This staked version slowly appreciates over time because it’s backed by yield-generating assets (such as real-world Treasury bills, DeFi lending, or hedging strategies).

Think of it like an interest-paying savings account; your balance may stay the same in units, but each token becomes worth more over time.

Varieties of Stablecoins: Staked vs Unstaked

• Some protocols offer both staked and unstaked versions of their stablecoins.

• For example, Ethena’s USDe can be staked to earn delta-neutral yield, while the unstaked version simply tracks the dollar.

• Staked stablecoins usually generate yield through DeFi mechanisms such as futures contracts, lending protocols, or liquidity pools.

• Unstaked stablecoins are fully collateralized and maintain a 1:1 peg without yield, but can be lent out externally for earnings.

Algorithmic or hybrid stablecoins like Frax and Ethena USDe combine collateral and hedging mechanisms for both stability and yield.

Here are 3 examples of “staked vs unstaked” (or yield-bearing vs standard) stablecoin varieties

Join our waitlist at: 👉 👉 👉 👉 https://demether.io

About Demether:

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Cardano ($ADA) has evolved from a third-generation blockchain experiment into a highly efficient, scalable platform supporting smart contracts, DeFi, and staking. In 2025, Cardano remains one of the most prominent and accessible Layer 1 blockchains for staking and yield-generating opportunities.

With its proof-of-stake consensus and robust network fundamentals, ADA holders can earn attractive yields through staking, liquidity provision, and emerging DeFi strategies. For both crypto enthusiasts and beginners, Cardano offers a blend of stable staking rewards, DeFi yield farming, and growing ecosystem protocols, delivering yields ranging from 3% to 8% APY on average.

In this week’s research, the Demether Research team uncovers the top 3 yield opportunities on Cardano, outlines how to capture them efficiently, and highlights the key risks to consider before deploying capital.

DISCLAIMER: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Top 3 $ADA Yields Right Now

1) Native ADA Staking via Delegation

Yield: 2.5% - 3.0% APY

Cardano’s proof-of-stake mechanism allows ADA holders to delegate tokens to top-performing staking pools such as StakeFish or Kiln. Rewards are distributed every epoch (~5 days).

Benefits: Low risk, no lock-up, rewards in ADA

Tips: Choose pools with low fees and non-saturated capacity from reputable companies to maximize rewards

2) Liqwid Finance Lending & Borrowing

Yield: 2% - 3% APY

Liqwid allows users to lend ADA and stablecoins while borrowers pay variable interest rates. Rewards are distributed frequently, supported by a robust smart contract infrastructure.

3) Minswap Liquidity Pool Farming

Yield: 4% - 15% APY (depending on the pool)

As a decentralized exchange (DEX) on Cardano, Minswap rewards users with MINS tokens for providing liquidity.

Note: Higher yields come with impermanent loss risk, so pool choice is crucial. Also be careful of pairing with low-liquidity stablecoins or memes: initial returns may appear attractive but do not take into account the risk of a sustained depeg or extreme price volatility.

How to Take Advantage of These Yields

1) Select and download a wallet
Choose wallets with native Cardano support for simplicity and security, for instance: Yoroi, Daedalus, Nami Wallet.

2) Acquire ADA
Purchase ADA via a centralized exchange or wallet-integrated fiat onramp.

3) Choose your yield strategy

• Native staking: Delegate ADA via Yoroi or Daedalus

• CEX staking: Deposit ADA into Binance or Coinbase Earn or native staking on such platforms

• DeFi yield farming: Provide liquidity or deposit into ADA-based vaults (e.g., ADAX, Minswap)

4) Deposit into the protocol
Follow official documentation for staking or liquidity provision. Confirm contract URLs for DeFi vaults and know which strategy you are exposed to.

5) Monitor yields and network conditions
Track APY fluctuations, pool performance, liquidity, and contract risks using wallet dashboards or protocol-specific trackers. Adjust allocations if necessary to optimize returns.

What are the Risks?

• Network/Protocol Risk: Downtime can reduce yields or delay rewards. Mitigation: Stake with reputable pools or CEX platforms.

• Smart Contract Risk: Bugs or exploits in DeFi vaults can result in loss. Mitigation: Use audited protocols.

• Liquidity Risk: LP tokens may experience impermanent loss or withdrawal delays. Mitigation: Allocate moderate amounts.

• Delegation Risk: Poor-performing pools reduce returns. Mitigation: Rotate between top-performing pools.

• Market Volatility: ADA price swings impact fiat value of rewards.

• Saturation of Pools: Overcrowded pools pay lower rewards.

• Scams/Rug Pulls: Particularly in high-APY yield farming projects.

Join our waitlist at: 👉 👉 👉 👉 https://demether.io

About Demether:

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Ethereum remains the beating heart of DeFi. Following the Shanghai upgrade, liquid staking and restaking have created an entire meta-layer of yield generation.

In this Demether Research issue, we explore the highest ETH yields available today, how to tap into them safely, and what to consider before committing capital.

DISCLAIMER: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Top 3 ETH Yields Right Now

How to Take Advantage of These Yields

1. Download a keyless wallet
   e.g., Coinbase Wallet (from Coinbase), Privy Wallet (from Stripe), or Dynamic Passkey Wallet (from Fireblocks).

2. Buy or bridge ETH
   Acquire ETH through a centralized exchange or purchase with a card via an on-ramp such as MoonPay or Transak.

3. Connect your wallet to the app of your chosen protocol

4. Deposit Token
   Always verify smart contract addresses from official documentation.

5. Track your position
   Monitor yield changes, liquidity and protocol integrity.

What are the Risks?

Main risks include, but are not limited to:

• Asset Risk:
  Your chosen asset may depeg from its fundamental value, which is especially true of liquid re/staking derivatives or suffer local price dislocations.

• Smart Contract Risk:
  Code exploits or protocol misconfigurations.

• Liquidity Risk:
  Watch the number of participants and the distribution of liquidity in cross-chain bridges and swap venues to ensure you can get your tokens out without significant risk or slippage.

Join our waitlist at: 👉 👉 👉 👉 https://demether.io

About Demether:

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Introduction

The era of crypto has shifted. From niche yields, memecoins, and crowded DeFi narratives, the focus is turning toward capital-efficient structures and institutional bridges to onboard new capital, new interest and new users into the crypto space.

One of the clearest structures emerging is the Digital Asset Treasury (or DAT). These are corporate or institutional balance sheets that treat digital assets as a core strategic reserve. In doing so, they offer novel benefits both to the companies themselves and to traditional financial investors seeking regulated exposure.

Understanding this model: how it works, what it enables, and how value is created, is essential for any curious investor, DeFi startup launching tokenized-stock products or projects aiming to partner with a treasury vehicle.

DISCLAIMER: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

Why Companies Adopt DATs

For companies, shifting part or all of their treasury to digital assets offers multiple strategic advantages:

Inflation & Fiat-Reserve Hedge: With global central banks printing liquidity and low real yields, holding cash or short-duration bonds has diminishing appeal. Digital assets offer an alternative store of value or growth engine. As a general point, with the cost of living rapidly increasing, the classic markers of middle-class stability, such as owning a house and a car, are being pushed out of reach for the majority of Gen-Z. Risk appetites have increased and investors are increasingly more open to new asset classes.

Balance-Sheet Transformation and Narrative: A pivot to digital-asset reserves could re-position a company, attract speculative capital, boost media attention, and raise its valuation multiple. Early movers in this space have leveraged that narrative, with some latecomers abusing the narrative to try and salvage a failed business model or attract investment to resolve a dangerously short runway.

Access to Novel Yield and Optionality: Especially when holdings include proof-of-stake tokens or other yield-bearing crypto assets, the company can generate incremental return on reserves via staking, DeFi strategies, or lending, not just price appreciation.

Capital-Markets Arbitrage: When equity markets price a company at a premium to its net-asset-value (NAV) of digital-asset holdings (the so-called mNAV > 1 scenario), companies can issue shares (or debt) and acquire more crypto, increasing “crypto per share”. This creates a positive growth loop.

Strategic Liquidity and Network Effect: By holding significant on-chain assets, companies can unlock partnerships in tokenized finance, serve as market-makers, provide liquidity to on-chain rails, and integrate directly with DeFi composability. For a tokenized-stock platform, partnering with such a treasury provides deep infrastructure benefits.

Why Traditional Financial Investors Care

From the investor side, DATs offer several appealing characteristics:

Compliance-Friendly Access to Crypto Exposure: Many institutional allocators are restricted from owning crypto directly (due to wallet risk, custody risk, or regulatory uncertainty). A DAT provides an equity wrapper around crypto exposure.

Amplified Upside: The company’s growth is tied not only to the underlying crypto price but also to the treasury strategy (crypto-per-share accretion, issuance of shares at premium). Because of this, investors can gain more leverage than simply holding the token.

Supply Lock-Up Effects: When a company buys large amounts of crypto and holds them on-chain, the effective circulating supply of that token is reduced, which under certain conditions can support higher token prices.

Corporate Governance and Transparency: Unlike many direct crypto holdings, DATs often publish disclosures, engage institutional custodians, and provide audit-friendly structures. This matches investor demands for governance and transparency frameworks.

Diversification and Permanent Capital Vehicle: Some analysts compare DATs to structures like REITs or MLPs, allowing investors to access long-term illiquid assets (in this case digital assets) via a publicly traded vehicle. It is far easier to buy and sell liquid instruments on recognised exchanges.

How the DAT Model Works

To make the DAT model actionable, it helps to break out the mechanics and value-levers, including raising capital, acquiring assets, growing crypto-per-share, yield generation, buybacks, and managing multiples like mNAV and terms like ATM.

Raising Capital

A company may issue equity, debt, convertible notes, or run an ATM (At-the-Market) program. An ATM enables the issuance of shares incrementally at the prevailing market price, often when the market grants a premium to NAV.

When the company’s stock trades above its implied NAV (based on the crypto holdings), issuing additional shares means acquiring crypto at an effective discount to underlying per-share value. This is attractive and accretive to shareholders.

Asset Acquisition & Holding

The raised capital is used to purchase digital assets (e.g., Bitcoin, Ether, Solana, BNB, etc.) and hold them on the balance sheet. In some cases, the assets may be staked, lent, or placed into yield-generating protocols. The company reports the holdings, possibly using DIY custodial disclosures or third-party audit or wallet transparency tools, which builds trust.

Crypto-Per-Share Accretion

One key metric is how many tokens are held per outstanding share of the company. If the company issues shares when the stock trades at a premium, it acquires more tokens per share, thus increasing the underlying crypto-asset per share metric.

Another metric is earnings accretion. For DATs that generate staking yield or DeFi returns on their holdings (unlike pure Bitcoin DATs), the yield can flow into the company and either be reinvested into assets or reduce dilution.

Yield & Earnings

For tokens like Ether, Solana or TON which support staking or validator reward models, the treasury qualifies for additional yield income. This yield may be modest (3–8%) but magnifies over large balances. If directed back into token acquisition rather than extracted as a dividend, yield generation accelerates the growth of tokens per share without necessarily raising new capital.

Buybacks & Share Issuance Dynamics

When a company has excess free cash flow (from yield or token sales) and trades at a discount to NAV, it may choose to buy back shares. This reduces the share count and increases tokens per remaining share. Conversely, when trading at a premium, the company may issue shares.

The dual levers of issuance (to acquire tokens) and buyback (to concentrate tokens) are central to value creation. ATM programs allow incremental issuance; PIPE (Private Investment in Public Equity) is a negotiated bigger raise but can introduce dilution risk.

mNAV (Multiple of NAV) & Key Metrics

mNAV is a multiple of net asset value (NAV) representing how much the equity trades relative to the value of its underlying digital-asset holdings.
For example: mNAV = Stock Price / NAV per Share.

When mNAV > 1 (i.e., stock trades at a premium), it creates a favorable condition for raising capital and buying assets.

When mNAV < 1 (discount to NAV), it handicaps issuance and may trigger buybacks or the risk of takeovers.

Other metrics include “Bitcoin Yield” (for BTC DATs) measuring how much BTC per share is growing , and “Token-per-Share growth rate” for yield-bearing DATs.

Economics of the Loop

Issue new shares (or debt) when a premium exists → arbitrage purchase of tokens.

Tokens held appreciate in value (price appreciation + optional yield).

Tokens per share increase → underlying value per share improves.

If the stock maintains or expands its premium, the cycle repeats.

If the premium compresses or the token price falls, the loop breaks and dilution may damage value.

How to Gain Exposure

Investors seeking exposure to the Digital Asset Treasury (DAT) model have several primary avenues, ranging from traditional equity investments to direct participation in the underlying token strategies.

1. Publicly Traded DAT Equity

This is the most direct and institutionally friendly method, allowing investors to benefit from the mNAV premium and the management execution loop. Investors purchase the shares of a publicly listed company that has adopted the DAT strategy, which provides a regulated equity wrapper around the crypto exposure, mitigating direct custody and wallet risk.

2. Direct Token Holding (The Base Case)

The fundamental exposure is achieved by simply purchasing and holding the underlying digital asset (e.g., Bitcoin, Solana, Ether). While this provides full exposure to asset price appreciation, investors miss out on the leveraged upside from the DAT’s accretive strategy (Layer 3 value) and the structural benefits of the public equity wrapper.

3. Investment in Exchange-Traded Products (ETPs)

Passive vehicles like spot Bitcoin or Ethereum ETFs offer regulated, convenient exposure to the asset price and often serve as a benchmark against which the actively managed DATs are measured.

4. Tokenized form of publicly traded DAT equity

Increasingly, public entities are seeking to capture the attention of users that are already crypto natives by offering their stock in tokenized form via popular platforms such as Backed.fi’s xStocks, ShiftRWA’s tokens and Ondo’s Global Markets offering. These tokens can be purchased on centralized exchanges (e.g. Kraken) or via secondary market liquidity pools on chain (e.g. Raydium on Solana).

Examples of the Largest Pure Digital Asset Treasuries

The following table lists the largest “pure” DATs (companies whose primary business model revolves around holding the treasury asset) as judged by the publicly disclosed scale of their founding or largest dedicated private investment in public equity (PIPE) transaction, which typically exceeds the $100 million threshold.

Examples of Tokenized Digital Asset Treasuries

The following table lists a number of known tokenized DATs — some of which are yet to launch.

Conclusion

The DAT model represents a structural innovation in how corporate treasuries, capital markets, and on-chain finance converge. By combining asset-rich balance sheets, token-per-share growth levers, yield generation, and public equity access, DATs create a unique vehicle for crypto exposure.

For a startup positioning itself in tokenized stocks and DeFi composability, understanding and potentially partnering with or emulating DAT structures is strategic. The ability to plug into a treasury-grade reserve, engineer crypto-per-share growth, and align with institutional investor demands puts you in a differentiated position as tokenization scales.

Common Terms Quick-Glossary

ATM (At-The-Market): Incremental share issuance program at the current market price.

PIPE (Private Investment in Public Equity): Negotiated investment by large institutional investors at specific terms, possibly dilution heavy.

mNAV (Multiple of NAV): Equity price divided by NAV per share of digital-asset holdings.

Crypto-asset per share accretion: Increase in tokens held divided by shares outstanding over time.

Token per share growth: A similar metric; for yield-bearing tokens, tokens can be grown via staking or income.

NAV per share: Total assets minus liabilities divided by shares. For DATs, assets mainly equal crypto holdings plus yield assets.

Earnings accretion: For DATs generating income (staking, DeFi), the net income reinvested or used for buybacks to boost value per share.

Buyback: When shares are repurchased, reducing the share count. This is beneficial if the treasury value remains stable or grows.

About Demether:

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

⚠ Disclaimer: This article is purely for educational purposes only and does not constitute financial, legal or investment advice. Please seek the advice of a qualified professional, do your own research and understand the risks before making investment decisions.

We’re excited to announce that Demether is officially joining the Chainlink Build program. As a part of Build, we aim to accelerate ecosystem growth and long-term adoption of AI-powered DeFi vaults by gaining enhanced access to Chainlink oracle services and technical support, as well as incentivizing greater cryptoeconomic security, in exchange for a commitment to provide network fees and other benefits to the Chainlink community and service providers, including stakers.

We’re confident that through enhanced support, secure offchain services, and the support of Chainlink’s vibrant communities, we can accelerate awareness of Demether and deliver our core value proposition in full form.

Demether: AI-Powered DeFi Vaults

Demether is an AI-native DeFi protocol building demAI, a suite of AI-powered vaults that automate access to yield strategies. With demAI, users can deposit stablecoins or BTC, while Demether dynamically optimizes yield sourcing, manages risk in real time, and deploys capital across multiple chains. Strategies can be launched through a simple intuitive interface, conversational AI, or a Telegram bot. Demether’s roadmap plans for a progressive expansion of the range of protocols and assets it supports with a particular focus on RWAs.

Demether’s mission is to make institutional-grade DeFi strategies accessible to everyone, from casual DeFi users to professional asset managers.

Why We Joined Chainlink Build

Build provides a strong support framework for maximizing the many benefits Chainlink’s oracle infrastructure provides. As part of Build, Demether will receive key advantages related to security and reliability, including access to and integration of Price Feeds for reliable asset pricing, Automation for autonomous strategy rebalancing, CCIP for secure cross-chain asset transfers, new product alpha and beta releases, along with various other exclusive benefits.

In exchange for these services, Demether will make a percentage of its native token supply available to Chainlink service providers, including stakers, over time. These mutually aligned economic incentives enable both communities to support one another.

“We’re excited to join Chainlink Build to gain enhanced access to industry-standard Chainlink services. The Chainlink standard will significantly strengthen Demether’s security and reliability, enabling us to build more advanced AI-powered DeFi vaults. In addition, aligning our project with the extensive Chainlink community will help drive the growth and adoption of Demether.” — Kartikeyan Swaminathan, Lead Contributor.

About Chainlink

Chainlink is the industry-standard oracle platform bringing the capital markets onchain and powering the majority of decentralized finance (DeFi). The Chainlink stack provides the essential data, interoperability, compliance, and privacy standards needed to power advanced blockchain use cases for institutional tokenized assets, lending, payments, stablecoins, and more. Since inventing decentralized oracle networks, Chainlink has enabled tens of trillions in transaction value and now secures the vast majority of DeFi.

Many of the world’s largest financial services institutions have also adopted Chainlink’s standards and infrastructure, including Swift, Euroclear, Mastercard, Fidelity International, UBS, ANZ, and top protocols such as Aave, GMX, Lido, and many others. Chainlink leverages a novel fee model where offchain and onchain revenue from enterprise adoption is converted to LINK tokens and stored in a strategic Chainlink Reserve. Learn more at chain.link.

About Demether

Demether is an AI-native DeFi protocol pioneering the next generation of yield infrastructure through demAI, a suite of AI-powered vaults that automate access to institutional-grade strategies. By combining real-time risk management with dynamic yield optimization and cross-chain capital deployment, Demether makes advanced DeFi accessible to everyone, from casual users to professional asset managers. Learn more at demether.io.

Following on from our first teaser of the G(R)AIN programme, we‘re thrilled to announce its inaugural launch on Taiko, alongside their Trailblazer campaign!

With this launch, activities will be double or even triple incentivized, rewarding users with:

✅ $GRAIN on-chain tokens
✅ Taiko campaign points
✅ Partner points & tokens from across the Taiko ecosystem.

🌟 Why Taiko?

The launch of G(R)AIN on Taiko is more than just another incentive program — it’s a strategic move to reward engagement and long-term participation in the Demether ecosystem. By integrating with Taiko’s Trailblazer campaign, we’re amplifying incentives and aligning with a vibrant, fast-growing blockchain network.

For participants, this means higher rewards and multiple ways to maximize yield, whether you’re a DeFi power user or just starting out.

🛠 How to Participate?

Engaging with the G(R)AIN programme is simple and rewarding. Follow these steps to start earning:

1) Mint $demSOL or $demETH on Taiko Chain from Arbitrum or Ethereum mainnet
🎥 Watch the video [here] for details on how to mint
2) Hold for a minimum of 7 days
3) Claim your $GRAIN rewards on app.demether.io CLAIM page
🎥 Watch how to claim $GRAIN [here].
4) Deposit your $demETH or $demSOL into a partner project (e.g.Izumi Finance)

🔥 Hint: We’ll soon announce special double/triple rewards with select partners! So stay tuned.

📢 Real-World Example: How a User Benefits

Let’s take an example of how a user can maximize their earnings with G(R)AIN:

• Day 1: Nicky mints $demSOL on Taiko

• Day 7: Nicky has now held her $demSOL for one week and can claim $GRAIN rewards!

• Day 10: Nicky deposits her $demSOL into a pool on iZumi, qualifying to stack incentives.

• Ongoing: Nicky continues to stake and earn more rewards over time, compounding her yield.

🤷‍♀ What’s Next? The Road Ahead

This is just the beginning! As we scale, we’ll be rolling out:

🚀 More blockchain integrations — expanding G(R)AIN beyond Taiko (eg: Superposition)
🤝 New partnerships — bringing more protocols into the rewards ecosystem
🎯 Additional utility for $GRAIN — increasing its value within Demether

🔔 Stay Updated & Get Involved 🔔

🌱 Join us on Twitter, Discord, LinkedIn, and our newly launched Telegram — let’s cultivate the future of DeFi together! 🌾

🚀 Let’s make G(R)AIN the gold standard of incentivization in DeFi!

Demether is thrilled to unveil the Harvest Spring Campaign — a multi-week spectacle of cross-chain innovation, next-level yield strategies, and epic community rewards. Brace yourselves for a non-stop lineup of high-energy events, collaborations, and opportunities to grow, earn, learn and thrive!

🚀 What’s in Store?

We’ve curated our calendar with game-changing discussions, exclusive partner showcases, and thrilling activations across the DeFi ecosystem. Expect cool rewards, surprises, and a front-row seat to the future of cross-chain finance with top alphas of the industry.

🔥 First Week Highlights

🌟 03/03
* 🚀 HARVEST SPRING LAUNCH + Full Event Calendar Drop
* 📢 Demether Telegram Channel Launch

🌟 04/03
* AMA with InfStones 🎙
* Harvest Spring Quest (TaskOn) ⚔

🌟 06/03
* Cross Chains Conversations Ep13 w/ Accumulate Network 🎯
* Major new Campaign Launch 🔜

🌟 07/03
* 🔦DeFi Showcase

🌾 This is just the start — Harvest Spring is packed with high-impact events!

📅 Full LIVE Calendar Available Here

⚠ Event dates & times may change. Stay updated with our LIVE Calendar & Twitter for real-time updates! ⚠

🤷‍♀ How to Get Involved

Engage and track your participation through our community magnets such as:

✅ Intract
✅ TaskOn
✅ Magic Square
✅ Root Data
✅ Galxe

Every interaction counts, and we’re keeping score across all platforms — so go all in, stay engaged, and yield the maximum rewards! 🌱💰

🌱 Grow with Demether — Stay Updated! 🌾

🌍 Website: Demether.io
🚀 Dapp: app.demether.io
🐦 Twitter: @DemetherDeFi
💬 Discord: Join the Community
🔗 LinkedIn: Demether on LinkedIn
🟣 Farcaster: Demether on Warpcast
📝 Research: @demether
📢 Telegram: Join the Chat

PANAMA CITY, 28 January, 2025: Demether is thrilled to announce the launch of demSOL, our innovative liquid restaking token (LRT) designed to bring Solana as an asset into Ethereum’s deep DeFi ecosystem via its L2 blockchains.

As a pioneering project in decentralized finance, Demether aims to unify two previously disparate ecosystems, enabling users to benefit from the best of both: using Solana assets as collateral, gaining exposure to a vibrant ecosystem and technology, alongside the opportunity set and familiar interfaces of DeFi in EVM environments.

What is demSOL?

demSOL is a unique token that combines the power of Solana’s high-performance blockchain with Demether’s expertise in yield generation. Key features include:

• Built on Solana’s lightning-fast and cost-effective network

• Bridging via LayerZero’s tried and tested Stargate bridge

• Offers competitive yields to holders

• Utilizes Jito’s advanced restaking and MEV capture mechanisms for optimal returns

• Accessible to all crypto users on 70+ blockchains via LayerZero’s technology

How It Works

Users can acquire demSOL by depositing SOL tokens into Demether’s decentralised application. These deposits are then staked and restaked via Jito’s platform to be utilized in its Node Consensus Networks (NCNs) as economic security. The resulting yield-generation is passed through as returns for token holders. demSOL is designed to be omnichain and can freely be used in both the Solana and EVM ecosystems but will initially be mintable on select Ethereum L2 partner blockchains.

Benefits for Users

• Passive yield generation: Earn enhanced yield on your SOL holdings without active management

• Liquidity: Easily trade the assets or use demSOL across Ethereum’s established DeFi landscape

• Security: Backed by Jito and Demether’s audited and robust smart contract architecture

• Simplicity: One token solution for yield optimization on Solana as an asset

Impact on the Ethereum Ecosystem

The introduction of demSOL is set to help broaden the vectors of growth in Jito’s ecosystem by tapping into utility with EVM ecosystems via Ethereum’s L2 blockchain. This positions demSOL as an additional product that we can offer blockchain partners to help attract and retain capital while allowing users to tap into two substantial narratives: Solana ecosystem exposure and passive yield.

“We’re ecstatic to partner with Jito Foundation to launch demSol, positioned as a groundbreaking product to unify the Solana and DeFi ecosystems,” remarked Kartik Swaminathan, CEO of Rolling Thunder Labs and Lead Contributor to the Demether project. “Our goals for demSOL are lofty and ambitious: to capture the attention of the market as the next intuitive narrative following the crypto community’s keen interest in yield-bearing Ethereum, US dollar and Bitcoin-based assets. In the coming months we can’t wait to unveil the list of reputable and established partners that will integrate demSOL, progressively enhancing utility for our users and making our suite of products an ever more compelling proposition. We hope the community will continue to back us on our journey!”

“We’re thrilled to see Demether bring restaked JitoSOL cross-chain and look forward to the exciting use cases it enables,”, said Jito Foundation Executive Director, Brian Smith.

Looking Ahead

demSOL showcases both Demether’s commitment to continuous innovation and our growing interest in the Solana ecosystem. We plan to expand its utility by integrating it with various DeFi protocols and exploring cross-chain opportunities to maximize value for our users.

The launch of demSOL marks a significant milestone in Demether’s mission to democratize access to sophisticated yield strategies and lower the barriers to crypto adoption. As we continue to push the boundaries of what’s possible in DeFi, we invite the Solana and Ethereum communities to join us in shaping the future of decentralized finance.

Stay tuned for more updates as we embark on this exciting journey with demSOL and the Solana ecosystem. We look forward to announcing our blockchain and DeFi launch partners soon.

Ready to experience the next evolution in DeFi?

Explore demSOL and start earning optimized yields today! Visit our partner vault here: demSOL Restaking Vault on Jito Network.

Join us in shaping the future of decentralized finance! 🚀

Introduction

At Demether, we believe in rewarding active participation, long-term commitment, and community engagement.The entire ethos is to incentivise members proportionate to the degree of their participation.

Demether is glad to announce the G(R)AIN programme — an overarching reward mechanism designed to acknowledge our community members & early supporters. The $GRAIN token, an omnichain token that users can collect for ecosystem engagement, is central to the programme. The more a given wallet participates, the more $GRAINs it accrues.

Whether you’re an early adopter, DeFi degen, or an active community member, G(R)AIN is your gateway to additional rewards and benefits. We’ll be counting down to the launch of G(R)AIN soon.🌾

Collecting G(R)AIN

$GRAIN, the ticker for the token from G(R)AIN programme, can be accrued by a bunch of activities:

1) dApp-based activities

🌾 Mint $demETH, receive $GRAIN:
Any wallet that mints $demETH shall automatically start receiving $GRAINs without any further action required. There are many activities through which users can accrue $GRAIN, including supporting the ecosystem, liquidity provision and participation in partner protocols. The most important two multipliers will be the amount of $demETH a user mints and the duration they hold $demETH on our partner chains. We’ll be releasing more details shortly. Note that these rules will be applicable across both testnet and mainnet activities.

🌾 Stake $GRAIN, direct rewards:
One of the key activities involving $GRAIN will be staking the token into designated blockchain vaults. This enables each blockchain community to vote to receive weekly emissions of rewards. Wallets participating in this governance-based mechanism shall receive amplified $GRAIN rewards, which can again be deposited back into the wallet — thereby creating a flywheel that rewards participation.

2) Off-chain activities

Demether deeply values community. We’ll also be evaluating rewarding our supporters for off-chain activities such as testnet feedback, participation in Cross Chain Conversations and other such contributions. The details for these are being finalised and will be released shortly.

Adapting and growing with Demether

The G(R)AIN program is not static; it evolves alongside the Demether ecosystem. With upcoming integrations on new chains, features and product launches driven by community feedback, G(R)AIN will continue to grow in value and utility.

The G(R)AIN program is your gateway to additional rewards and special perks for contributing to the ecosystem and the community. Whether you’re staking $ETH, completing off-chain quests, or leading discussions, every action helps you sow the seeds of a richer DeFi future.

Join us on Twitter and Discord to receive the announcements as they go live.

Demether is committed to building a sustainable and user-friendly DeFi ecosystem that empowers blockchain foundations to attract and retain liquidity effortlessly. We are on a mission to onboard the next billion into passive income through our yield-bearing tokens.

Choosing the right partner to support this vision is crucial, and Movement Labs is one of the best we could have partnered with.

Demether prides itself on its focused approach and building depth within a select few ecosystems. Here are the core reasons we chose to join the Movement:

1. Seamless cross-chain interoperability

Movement Labs is at the forefront of blockchain interoperability, leveraging a robust ecosystem built around key innovations like M1, M2, Move Stack, and MoveVM. The M1 layer, a shared sequencer, enables atomic operations across chains, enhancing liquidity and operational efficiency. Meanwhile, M2 drives decentralized execution across diverse environments, ensuring seamless cross-chain interactions. These innovations will empower Demether to support other Move-based chains with products and solutions in the future.

2. Developer-friendly environment

Move’s modular architecture promotes reusable and scalable code, while features such as linear types and strict access controls prevent common errors like double-spending. The prompt support received from the Movement team helped us quickly enable and run the testnet.

3. Shared vision for DeFi growth

Movement Labs shares our commitment to DeFi innovation and user accessibility. Their focus on scalability, security, and abstraction is evident in the wide range of partnerships they have forged. Demether is entering a healthy and vibrant ecosystem that includes partners like MovePosition, Nucleus, Nine Suns AI, and many others, offering a wealth of opportunities to add value for our users.

The synergy between Demether and Movement Labs creates the perfect environment to refine and showcase our dApp’s functionality. By leveraging Movement’s cutting-edge technology, we are taking one step closer to redefining liquidity management in DeFi.

We invite you to mint our first token, $demETH, on Movement Labs’ testnet and share your feedback.

🔗 Try Demether on Movement Testnet Now

Let’s sow the seeds of a new DeFi revolution! 🌾

About Demether

Demether is a TVL-as-a-service protocol that enables blockchain foundations to attract and retain liquidity at zero cost. It is on a mission to onboard the next billion into passive yields via a suite of yield bearing tokens.

The protocol, supported by Animoca ventures, Skyvision Capital, Formless Capital and 19 other partners, is currently in the pre-launch phase. We are targeting to go live by Q4 2024. The first product to be launched by Demether will be a synthetic liquid restaking token, $demETH.

Website: https://demether.io
Twitter: https://x.com/DemetherDeFi
LinkedIn: https://www.linkedin.com/company/demether

About Movement Labs

Movement Labs is at the forefront of blockchain innovation, focusing on modular architectures that enable scalability, interoperability, and chain abstraction. As a Layer-2 solution leveraging the Move programming language, Movement Labs empowers developers to build and deploy decentralized applications (dApps) with enhanced security, flexibility, and performance. By separating execution, consensus, and data availability layers, Movement Labs facilitates seamless integration across chains, creating a truly interconnected ecosystem.

The Demether team recently attended Devcon 2024, and what a whirlwind of insights, connections, and energy it was!

Here’s our take on the event and what it means for the future of DeFi and beyond.

1. Cross chain is the answer

The buzzword of the week award goes to chain-abstraction. Players — big & small — are identifying it as the key to making web3 mainstream. There is an intensified focus on interoperability and seamless multi-chain operations. This resonates deeply with Demether’s mission to create accessible and efficient yield-maximization solutions across multiple chains.

2. Massive turnout reflects growing ecosystem

The scale of Devcon Bangkok was nothing short of impressive. The event drew an enormous crowd, showcasing the tremendous interest in EVM-based ecosystems. Beyond Ethereum, the presence of alt-VM groups like Solana, Aptos, and Sui underlined the diversity and vibrancy of blockchain development today.

3. Ethereum’s steadfast role

Despite the undercurrents, the Ethereum ecosystem remains robust and forward-looking. Devcon showcased Ethereum’s resilience through major announcements: the launch of Beam Chain, enhancing scalability and security, and the unveiling of Ethereum’s 2030 roadmap by Vitalik, which focused on security, scalability, and sustainability. These milestones reaffirm Ethereum’s role as the backbone of DeFi and a cornerstone for projects like ours to innovate.

4. DeFi innovation continues to thrive

DeFi took the spotlight in various discussions, highlighting the growing focus on creating robust, user-friendly applications. A key theme was the need for better liquidity management and user retention — problems that Demether is actively solving. From improving capital efficiency to fostering deeper community engagement, the event showcased how DeFi protocols are preparing for mass adoption.

5. Interesting increase in community hubs and private events

Devcon nailed the concept of community hubs — dedicated spaces for self-organizing meetups and conversations. This helped attendees connect meaningfully without the chaos of traditional conferences. Onsite private events also fostered deeper discussions around adoption and outreach.

Devcon Bangkok wasn’t just an event; it was a reflection of an industry gearing up for its next big leap. With chain-abstraction, institutional backing, and innovative community-driven models, the future looks incredibly promising.

At Demether, we’re ready to sow the seeds for what’s next.

Follow us on X to keep yourself updated with what we are cooking at Demether HQ!

About Demether

Demether is a DeFi protocol which blockchain foundations can deploy to attract and retain capital at zero cost. Demether offers a suite of yield bearing tokens that users can bridge over to partner blockchains to supplement TVL and receive an enhanced yield in return for their loyalty to the ecosystem.

Our mission is supported by some of the biggest names in the industry including SkyVision Capital, Formless Capital, Gandel Capital, M Capital & 15+ other partners. We are live on Morph and Movement and will be launching on Superposition, a DeFi-native L3 and LightLink soon.

The first product to be launched is a synthetic liquid restaking token, $demETH.

The Demether deep-dive series offers readers a close look at our progress and the principles that guide us as we head toward launch.

🌾 Demether Deep Dive: Enroute to Onboarding the Next Billion
🌾 Demether’s security practices

The problem of capital flight and liquidity drain

In DeFi, bootstrapping capital is only half the battle. Retaining it is where true sustainability lies.

The majority of blockchain ecosystems typically witness a rapid influx of capital during initial phases when the incentives are high. The real struggle begins when they have to hold onto the acquired liquidity, long-term. Liquidity tends to chase yield and frequently migrates between platforms, making capital retention a major challenge for many ecosystems.

Blockchain ecosystems often face three critical challenges when it comes to retaining capital. They are:

• Unsustainable rewards:
  Foundations offer sky high rewards to incentivise early adoption and motivate user onboarding. Such rewards are not sustainable in nature and must eventually taper. Active users typically dwindle with rewards.

• Liquidity migration:
  Users often chase yields, continuously moving capital between protocols which promise the highest income. This “liquidity hopping” (yes it’s a real term) leads to constant churn and unstable TVL, making it harder for foundations to build a stable on-chain economy.

• User disengagement:
  Without constant value (regular incentives) or engagement, users withdraw their assets, leaving the ecosystem underfunded and inactive. Not only this, the learning curve in DeFi is steep. Complex interfaces and technical processes often discourage new users, with significant drop-offs happening every step of the way.

This capital flight leads to instability in liquidity pools, foundation treasuries, and overall growth, making it hard for ecosystems to thrive. This is where Demether’s role in capital retention comes into action.

Demether’s strategy for retaining capital

At Demether, we recognize that keeping liquidity within ecosystems requires more than just initial incentives — it needs long-term rewards and deep alignment between the users and the foundations.

Here’s how we approach capital retention with a focus on sustainability and loyalty:

• Loyalty-based rewards: Our core focus is to reward users for their long-term commitment to an ecosystem. Instead of relying on short-term airdrops or heavy initial incentives that quickly dry up, Demether constructs a stream of loyalty bonuses through its weekly rewards. These rewards help significantly amplify yields in proportion to the duration of users’ participation in a given ecosystem. The longer users stay, the greater their share of the rewards, driving users to hold onto their capital rather than seeking other farming/yield-generating opportunities.

• Stake for incentivised governance: Another powerful capital retention mechanism is Demether’s incentivised governance staking model. Users can stake their protocol tokens into vaults, voting to boost the rewards entering the ecosystem. This staking mechanism turns passive participation into active engagement, ensuring that capital remains within the ecosystem and users see ongoing benefits from their contributions.

• Aligning users and ecosystems: To retain capital, there must be alignment between the protocol and its users. Both blockchain foundations and users are incentivised to stake, creating alignment between the parties. While the foundation kick-starts the growth flywheel on a given chain, the community is incentivised to vote and take over collective control from the foundation to decide the quantum of rewards entering the ecosystem. This ensures that capital retention is driven through collective long-term goals.

The flywheel effect of capital retention

By combining loyalty-based rewards, staking incentives, and community-driven governance, Demether creates a flywheel effect where:

• Users are motivated to stay engaged due to the continuous flow of rewards.

• Liquidity remains stable as users continue to stake and participate.

• Ecosystem growth is sustained as the community is regularly engaged in deciding the future.

As capital stays within the ecosystem, the protocol becomes more robust, further attracting participation and increasing overall value.

Retaining capital in DeFi is no easy task, but Demether’s innovative approach lays the foundations to sustainably bootstrapping a nascent ecosystem.

Stay tuned for more updates as we continue to reshape the future of DeFi and prepare for our mainnet launch!

Follow us on DemetherDeFi Official X or Telegram today!

🌾 How to get Ether to use on our testnet?

Getting Holesky ETH via Google:

1. Visit: https://preview.demether.io

2. Make sure you are on Holesky Testnet

3. Click on the “Free ETH Faucet” button.

4. Select Holesky Network, enter your ETH wallet address or ENS name in the field and click on the “Receive 1 Holesky ETH” button.

5. You will need to login with Google credentials to receive the Holesky ETH in your wallet.

Getting Sepolia ETH via Google:

1. Visit: https://preview.demether.io

2. Make sure you are on Sepolia Testnet.

3. Click on the “Free ETH Faucet” button.

4. Select Sepolia Network, enter your ETH wallet address or ENS name in the field and click on the “Receive 0.05 Sepolia ETH” button.

You will need to log in with Google credentials to receive the Sepolia ETH in your wallet.

Getting Sepolia ETH via Alchemy:

1. Visit: https://www.alchemy.com/faucets

2. Click on the “Ethereum Sepolia Faucet”.

3. Make sure you have at least 0.001 $ETH on Ethereum mainnet in order to get Sepolia $ETH. This is done to prevent bot attacks.

4. Now, please sign up by clicking on the “Please signup or login” button present on your screen. If you already have an account on Alchemy, then simply log into it.

5. Now enter your ETH wallet address in which you want to receive Sepolia ETH.

6. Now, please proceed with the reCaptcha verification and click on the “Send Me ETH” button.

7. Once you successfully receive 0.1 Sepolia ETH, you will be shown a success page.

🌾 Connecting your wallet with Demether’s dApp

1. Visit to https://preview.demether.io

2. Click on the “Connect Wallet” button present on the top right corner.

3. Choose the wallet that you want to connect with the dApp. In this case, we are using MetaMask.

Other wallets you can use are: Bitget Wallet, OKX Wallet, Coinbase Wallet and WalletConnect.

4. The example below illustrates the flow using a Metmask wallet:

a. Select your preferred account from the list and click on “Next”.

b. Grant the permission by clicking on “Confirm”.

5. Your wallet will now be connected with the dApp.

🌾 Depositing Holesky $ETH and Minting $demETH on Morph

1. Make sure you are on the Morph testnet and using Holesky ETH. Check it in the fields highlighted.

2. Click on the text field given below “From” and enter the amount of $ETH that you want to stake and mint $demETH against.

3. Click on the “Mint” button to stake. Here we are using Metamask. Let’s see how you can proceed.

a. Click on the “Confirm” button to approve the transaction.

4. Once the transaction has been completed, you will be shown a confirmation message.

🌾 Depositing Sepolia $ETH and Minting $demETH on Morph

1. Ensure you are on the Morph testnet and using Sepolia ETH. Check it in the fields highlighted.

2. Click on the text field given below “From” and enter the amount of $ETH that you want to stake and mint $demETH against.

3. Click on the “Mint” button to stake. Here we are using Metamask. Let’s see how you can proceed.

a. Click on the “Confirm” button to approve the transaction.

4. Once the transaction has been completed, you will be shown a confirmation message.

🌾 Depositing Holesky $ETH and Minting $demETH on Move

1. Ensure you are on the Move testnet and using Holesky ETH. Check it in the fields highlighted.

2. Click on the text field given below “From” and enter the amount of $ETH that you want to stake and mint $demETH against.

3. Click on the “Mint” button to stake. Here we are using Metamask. Let’s see how you can proceed.

a. Click on the “Confirm” button to approve the transaction.

4. Once the transaction has been completed, you will be shown a confirmation message.

🌾 Depositing Sepolia $ETH and Minting $demETH on Move

1. Ensure you are on the Move testnet and using Sepolia ETH. Check it in the fields highlighted.

2. Click on the text field given below “From” and enter the amount of $ETH that you want to stake and mint $demETH against.

3. Click on the “Mint” button to stake. Here we are using Metamask. Let’s see how you can proceed.

a. Click on the “Confirm” button to approve the transaction.

4. Once the transaction has been completed, you will be shown a confirmation message.