In this edition of The Weekly Alpha:

🧑‍🌾 5 Yield Opportunities on Base

🧐 Onchain Analytics

📚 This Week’s Intel

🎧 Podcast Picks

Base is not the loudest chain in crypto.

There is no Base token to trade. No airdrop campaign to farm. No governance chart for people to argue about every week.

That makes the chain easier to underrate.

But the underlying numbers are getting harder to ignore. L2Beat has Base at roughly $11.35B in total value secured and Stage 1 today. DefiLlama shows about $4.0B in DeFi TVL, $4.8B in stablecoins, and around $7.7B in 7-day DEX volume on the chain.

That is the more interesting version of the Base story. It is not growing because people are chasing a native token. It is growing because Coinbase distribution, low fees, deep USDC liquidity, and a few strong native protocols are starting to create a real DeFi surface.

The practical question is simple: if Base is becoming one of the main places onchain capital sits, where is the yield?

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Here are five Base yield opportunities I would look at first. APYs move quickly, so treat the numbers as a dashboard snapshot, not a promise.

1. Aerodrome Slipstream WETH/USDC

Aerodrome is still the main native DEX on Base.

Its WETH/USDC Slipstream pool is the highest-yield option on this list, with the current dashboard snapshot showing roughly 54% APY. That comes from two places: swap fees and AERO emissions.

This is not passive yield. It is concentrated liquidity. You choose a range, collect fees when trades pass through it, and take impermanent loss if price moves hard enough against your position.

That tradeoff is fine if you know what you are doing. It is not fine if you look at the APY and assume it behaves like a lending vault.

The real signal is that Aerodrome continues to matter for Base liquidity. If Base activity keeps growing, Aerodrome remains one of the cleanest ways to express that view. Just remember that part of the yield depends on AERO incentives, and incentives can move.

2. Uniswap V3 WETH/USDC

The cleaner comparison is Uniswap V3.

The WETH/USDC pool on Base is showing roughly 48.70% APY in the current snapshot, and the important part is that this is fee-driven. No AERO rewards. No gauge voting. No token emissions trying to make the number look better.

That makes it one of the stronger signals in the whole issue.

A high fee APY on a deep WETH/USDC pool means traders are actually using Base. That is harder to fake than TVL. Capital can be incentivized. Volume and fees have to keep showing up.

The risk is still concentrated liquidity. You are not just “earning 48.70%.” You are underwriting a WETH/USDC range. If ETH moves outside your range or volatility picks up, the pool can become much less comfortable very quickly.

3. Avantis USDC LP

Avantis is the more interesting passive option.

Instead of managing a DEX range, you deposit USDC as counterparty liquidity for perp traders. The current snapshot shows roughly 10% APY with about $35M in protocol TVL.

The appeal is obvious: single-sided USDC, no impermanent loss, no range management.

The risk is also different. You are taking exposure to perp trader flow and protocol design. Perp DEXs are more complex than simple lending markets. Funding, trader PnL, liquidations, oracle assumptions, and contract risk all matter.

So I would not put Avantis in the same “safe stablecoin yield” bucket as lending. It is more like structured market-making exposure with a simpler user interface.

4. Morpho Blue USDC

Morpho is the most straightforward lending option on Base.

The USDC market snapshot is around 4.06% APY. Nothing dramatic. But that is partly the point.

The yield comes from borrowers paying variable interest. No LP range. No perp counterparty exposure. No need to care about AERO emissions or trading volume every day.

For a reader who wants Base exposure without turning every deposit into an active strategy, this is probably the first place to look.

The risk is lower, not zero. Lending markets still depend on collateral quality, oracle behavior, utilization, liquidation mechanics, and vault curation. Morpho is a strong protocol, but the exact market matters more than the logo.

5. Moonwell USDC

Moonwell is the smaller lending option.

Its USDC market is showing roughly 5.21% APY, split between lending interest and WELL incentives. The TVL is much smaller than the largest Morpho or Aave-style markets, which cuts both ways.

Smaller pools can sometimes pay a better rate because utilization moves faster. They can also become unstable faster when one large depositor or borrower changes the balance.

I would treat Moonwell as a Base-native lending bet, not the default stablecoin parking place. The rate is fine, but the market depth matters.

How I Would Think About It

The high headline APYs are in DEX liquidity. Aerodrome and Uniswap can pay well because Base has real trading activity, but they require active management and IL risk.

The more boring yields are in USDC lending. Morpho and Moonwell are easier to understand, easier to monitor, and much less likely to surprise you with range problems.

Avantis sits in the middle. It gives you single-sided USDC, but the risk comes from perp market structure instead of lending utilization.

The strongest signal this week is not that Base has one amazing pool. It is that Base now has a full yield curve: active LP, fee-only LP, perp LP, lending, and incentive-backed lending.

That is what mature DeFi chains start to look like.

Base does not need a token for this to matter. In some ways, the lack of a token makes the signal cleaner. There is no native asset distorting the read. The question is just whether capital, volume, and useful protocols keep showing up.

Right now, they are.

🧐 Onchain Analytics

This is what I have actually been watching onchain this week.

Lending Is Recovering, But Not Everywhere

The lending market looks calmer than it did two weeks ago.

During the sell-off, Aave was printing $6.4M/day in liquidation fees and Morpho fees were up 372%. That was not normal growth. That was leverage getting forced out of the system.

Now the numbers look more balanced. Aave V3 is at $11.8B TVL, up 4.3% this week. Morpho Blue is at $6.67B, up 5.5%. SparkLend is at $3.34B, up 8.3%.

Fees are cooling too. Total DeFi fees over the past 7 days were $371M, down from $430M in the prior 7-day period. That is what you want to see after a stress event. The system worked, the fee spike faded, and capital started moving again.

The split is the part I care about. SparkLend is growing faster than Aave and Morpho. Maple bounced 13% to $2.12B. Kamino Lend on Solana went the other way, down 15.6% to $1.08B.

So lending is recovering, but not evenly. Capital is moving back toward Ethereum-aligned and institutional credit markets first. Solana lending is not getting the same bid this week.

The caveat is Maple. A 13% weekly bounce looks good, but one week does not prove a credit cycle has turned. I would want to see that TVL hold through another volatile week before treating it as a real trend.

RWA Is Starting To Sort Winners From Experiments

RWA TVL is roughly flat at $25.9B, but the category is not standing still.

Centrifuge is up 18.1% to $1.63B. Circle USYC is at $3.01B, up 6.5%. OpenEden TBILL is up 28.3% to $216M. BUIDL keeps grinding higher at $3.03B, up 2.6%.

At the same time, Ethena USDtb is down 9.2% to $916M and WisdomTree dropped 9.6%.

That is the useful signal. RWA is no longer just one broad trade where everything moves together. Capital is starting to separate the deeper, more institutionally credible products from the smaller experiments.

For anyone allocating to RWA products, APY is not enough. The better questions are: who is the issuer, how deep is the liquidity, who holds the token, and how clean is the redemption path?

The caveat is Centrifuge. An 18% weekly move is strong, but it could still be one large allocation. The real test is whether the capital stays over the next 30 to 60 days.

Base Is Quiet, Which Is Fine

Base did not have a dramatic week. That is not a bad thing.

Base bridge TVL is at $2.37B, up 3.8% weekly. Arbitrum is at $2.72B, up 3%. After the recent volatility, modest growth across both chains is healthier than another zero-sum rotation.

The number I keep coming back to is Base stablecoin supply: $4.76B, according to DefiLlama. That is a lot of capital sitting on the chain before it shows up in lending, DEX volume, or yield vaults.

Aerodrome still dominates the Base DEX story, but the stablecoin base matters more for the next leg. If confidence improves, Base already has the dry powder for lending markets, LP positions, and yield products to grow without needing a new bridge wave first.

The caveat is that stablecoin supply is not the same as deployable DeFi capital. Some of it sits in Coinbase-linked wallets, CEX flows, or passive balances that may never touch a protocol. Still, the raw base is there.

📚 This Week’s Intel

A few stories worth your time that did not make the main thesis.

1. Japan’s Lower House Passes Sweeping Crypto Bill — 20% Flat Tax Rate

Japan’s legislature passed a bill amending the Financial Instruments and Exchange Act to regulate cryptocurrencies more like securities. The standout change: a flat 20% tax rate on crypto gains, down from up to 55% for high earners. The bill also creates a clear regulatory path for crypto ETFs.

This matters because Japan is not a small market. 127 million people, one of the world’s deepest capital markets, and a government that has been methodically building crypto infrastructure for years. If the upper house clears it, this could become one of the more important regulatory shifts of the year.

The caveat: Japan has had progressive crypto laws before, and adoption has not always followed. Tax cuts help, but they do not automatically create demand.

Source: Unchained Crypto

2. BlackRock Files Final Amendment for BITA — a Yield-Bearing Bitcoin ETF

BlackRock submitted what appears to be the final filing for BITA, a covered-call Bitcoin ETF. The fee: 65bps, cheaper than many actively managed crypto products. The mechanism: BlackRock sells Bitcoin call options, collects the premium, and pays it out as yield to holders.

Why it matters: this gives income-focused investors a regulated way to get BTC exposure with cash flow, which is a different thesis than spot BTC alone.

The risk: covered-call strategies cap upside. In a bull market, you collect yield while missing part of the move. In a flat or slightly up market, they can work well. Know what you are buying.

Source: Unchained Crypto

3. CFTC Proposes First Formal Rulemaking for Prediction Markets

The CFTC released a 90-day framework to vet event contracts covering areas like war, gaming, assassination, and terrorism. This is the agency’s first formal rulemaking for prediction markets after years of ad-hoc enforcement actions.

The downstream impact is direct: Polymarket, Kalshi, and Hyperliquid’s new prediction-market expansion all operate in the regulatory gap this rule would narrow. A clear framework is better than the current uncertainty, but the scope of prohibited contracts will decide how much room the category has in the US.

The outcome matters for DeFi because prediction markets are one of the few crypto categories generating real, repeatable fees outside of perps and lending. A restrictive rule could cap that growth.

Source: Unchained Crypto

4. Tether Backs Neura’s Robotics Round

Tether participated in Neura’s large robotics funding round, reportedly worth up to $1.4B. The broader idea is to connect Tether’s wallet and edge-computing work with robots and machine-to-machine payments.

This fits Tether’s machine economy thesis. The company has been moving beyond stablecoins into mining, AI infrastructure, education, and now robotics.

The caveat: this is years out. Robots need to ship, customers need to care, and Tether’s non-stablecoin bets still carry execution risk.

Source: FT / WSJ coverage, plus Unchained Crypto

5. Centrifuge TVL Surges 18% to $1.63B

Centrifuge, the RWA credit marketplace, added roughly $250M in TVL this week, an 18% move to $1.63B. For context, most DeFi lending protocols are flat or recovering, while Centrifuge is growing.

Why it matters: Centrifuge is one of the cleaner institutional credit stories in DeFi. It connects real-world borrowers with onchain liquidity. The growth suggests institutional credit demand is real, not just a narrative trade.

The caveat: $250M in one week could be one large allocation from a single investor. The real test is whether the TVL holds over the next 30 to 60 days. Watch fee generation, not just the headline number.

🎧 Podcast Picks

Podcasts worth your time this week.

The Rollup: DeFi Dad: The Ethereum Bull Thesis In 2026

This one fits the Base issue because Base is still an Ethereum-aligned bet. DeFi Dad talks through ETH staking yield, RWA tokenization, and why Ethereum’s role as settlement layer still matters even when attention moves to faster venues.

The useful part is not the ETH bull case by itself. It is the framing: if ETH becomes the base collateral and settlement layer for onchain finance, chains like Base become part of that distribution layer.

Empire: CFTC Chair Michael Selig On Perps, Prediction Markets & Crypto In The U.S

Worth listening to after the CFTC item above. The discussion covers US perps, prediction markets, DeFi regulation, 24/7 markets, and coordination with the SEC.

For DeFi readers, this matters because perps and prediction markets are two of the few crypto categories with real fee demand. The open question is how much of that activity can survive inside a US regulatory framework.

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That’s it for this week.

If you found this useful, share it with someone who is trying to make sense of this market.

You can also follow me on X and Farcaster for more frequent updates.

Leave a comment

Nothing in this newsletter is financial advice.

I personally use many of the protocols I write about, but that does not make them safe. Crypto is risky, DeFi is risky, and things can break quickly.

Do your own research, size positions carefully, and never invest more than you can afford to lose.

In this edition of The Weekly Alpha:

🧑‍🌾 Pendle's Quiet Breakout Week

🧐 Onchain Analytics

📚 This Week's Intel

🎧 Podcast Picks

Hello everyone,

Crypto had a rough week.

BTC briefly traded below $60K, ETH was down more than 20% on the week, and roughly $1.6B in leverage was wiped out in a single day. CoinDesk framed it as the worst weekly drop for BTC and ETH since the FTX collapse, which gives you an idea of how violent the move felt.

But not everything traded the same.

Pendle was down too, but it held up better than most DeFi tokens. While ETH and AAVE were down more than 20%, PENDLE was down closer to 9% depending on the snapshot you use.

That alone does not make it a buy. Small caps can move strangely during crashes. But the timing was interesting.

During the same week, Pendle got two important catalysts: Revolut listed PENDLE for European users, and Sky, the protocol formerly known as MakerDAO, launched fixed-rate yield through Pendle.

That is the story this week.

Not just that PENDLE outperformed. More that the market had a stress event, and Pendle’s core product suddenly looked more useful.

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Pendle’s Quiet Breakout Week

Let me start with the simple version.

Pendle is a yield tokenization protocol. It lets users split yield-bearing assets into two parts: the principal and the future yield.

That sounds boring until markets start breaking.

In a calm market, fixed-rate yield can feel like a niche product. In a crash week, it starts to make more sense. Some users want upside from variable rates, especially when borrow demand spikes. Others just want to lock a fixed return and stop thinking about it.

Pendle sits directly in that trade.

Revolut listed PENDLE

The Revolut listing matters because it changes distribution.

A lot of crypto-native listings are just more access for people who were already going to buy the token anyway. Revolut is different. It puts PENDLE inside an app that many retail users already treat like a bank account.

I would not overstate it. A listing is not product-market fit by itself.

But for a protocol like Pendle, distribution matters. Yield tokenization is still hard to explain to normal users. If a major fintech app starts giving the token more visibility, the top of the funnel gets a lot wider.

Sky launched fixed-rate yield through Pendle

This is the stronger catalyst in my opinion.

Sky, the protocol behind USDS and sUSDS, launched fixed-rate yield using Pendle’s infrastructure. The fixed-rate product was around 42%, and it is tied to one of the largest stablecoin pools in DeFi.

That matters because Pendle is not only serving degen yield chasers here. It is being used by a large stablecoin protocol to package yield in a cleaner way.

This is the kind of integration that makes the thesis easier to understand.

Pendle is not just a place to speculate on APY. It can become infrastructure for treasuries, stablecoin protocols, and users who want predictable returns in DeFi.

Why volatility helps the Pendle story

This week was a good reminder that yield behaves differently in stress.

When markets crash, borrow demand can spike. Liquidations hit. Rates move around. Protocols like Aave and Morpho start printing fees because the lending engine is working harder.

Pendle is interesting because it lets users choose which side of that volatility they want.

YT holders can benefit when variable yield spikes. PT holders get the fixed-rate side and do not need to care as much about the daily rate chaos.

That is the product-market fit.

Not in a perfect bull market where everything goes up. In the messy weeks where people actually need to manage risk.

The PT-sUSDE pool on Pendle’s Plasma chain also matured this week, with roughly $190M in fixed-rate yield paying out as expected. That kind of reliability is exactly what treasury managers and larger allocators care about.

Ticker: PENDLE, around $1.20 at the time of writing. Market cap around $200M, FDV around $340M.

The other side

There are real risks.

PENDLE is still down massively from its 2024 high. The token does not have a hard max supply, so emissions matter. TVL also fell this week, even if part of that was just asset prices dropping.

And at this market cap, PENDLE is still small by DeFi standards. One large seller can move the chart.

So I would not frame this as a clean breakout yet.

The better framing is this: Pendle had a real stress test, held up better than most DeFi tokens, and picked up two integrations that strengthen the long-term yield tokenization thesis.

That is worth paying attention to.

Onchain Analytics 🧐

This is what stood out to me onchain this week.

L2 TVL looked worse in dollars than it did in ETH

A lot of L2 dashboards looked ugly this week because ETH was down hard.

In USD terms, TVL dropped across most of the market. But that does not always mean capital left the ecosystem. Sometimes it just means the asset used to measure the ecosystem got repriced.

That is why I like checking both USD and native asset terms during weeks like this.

The cleaner signal is that some L2s still showed deposit strength even while the dollar value fell. World Chain was one of the standouts, with strong TVS growth while most major L2s were red.

The caveat is important: World Chain is still Stage 0, so the security model is not where I would want it to be for large long-term allocations.

But the inflows are still worth watching.

Fees showed where the stress went

The biggest fee spikes this week were not only in the obvious places.

Aave V3 had a huge fee day as liquidations picked up. Morpho and Spark also benefited from the lending layer running hot.

That is not the same as organic growth.

It is a volatility fee spike. Useful signal, but not something I would treat as a clean growth trend by itself.

The more interesting part is that DeFi kept functioning. The lending protocols did what they were supposed to do during a rough deleveraging event.

Block builders also had a strong week. That makes sense. When liquidations, arbitrage, and volatility increase, MEV capture increases too.

It is a reminder that Ethereum’s fee economy is much bigger than just the apps we usually talk about.

Stablecoins held up well

Stablecoin supply stayed around the $314B to $317B range depending on the source snapshot.

USDT is still around $187B. USDC is around $75B.

No major panic redemption signal there.

The one thing I am watching is Ethena’s USDe, which fell to around $4.5B. That makes sense if funding rates are shifting and delta-neutral strategies are being reduced.

For DeFi health, USDC staying steady is probably the cleaner signal

.

Hyperliquid is still a stress-test name

Hyperliquid’s TVS looked weak in dollar terms, but the more important question is whether deposits and trading activity hold up.

The perp venue still generated strong fees during the crash week. That is what you want to see from an exchange-like protocol during volatility.

The risk is still the same: HYPE and Hyperliquid are now a huge narrative, and huge narratives can unwind quickly when positioning gets crowded.

But from a usage perspective, it is still one of the more important protocols to track.

This Week’s Intel 📚

1. Zcash patched a critical Orchard vulnerability

Zcash disclosed and patched a serious Orchard vulnerability that could have allowed counterfeit ZEC creation inside the shielded pool.

That is the kind of bug that hits trust directly, especially for a privacy coin.

The important nuance is that Zcash Foundation said there was no evidence of an exploit. But the market still reacted hard because with shielded systems, proving what did or did not happen is harder than with a transparent ledger.

This is probably the most important privacy story of the week.

2. DeFi governance risk is becoming harder to ignore

Governance attacks and governance-related exploits keep showing up as a risk theme in 2026.

The problem is simple: a lot of protocols still have low voter participation, large idle treasuries, and governance systems that were not built for adversarial markets.

Flash-loan voting is only one version of the problem. Delegation, quorum design, timelocks, multisig control, and cross-chain governance all matter now.

This is worth tracking because the next major DeFi exploit may not be a smart contract bug. It may be a governance failure.

3. RWAs held up better than retail DeFi

The RWA sector still looks more resilient than the retail side of DeFi.

That fits the broader market structure story. Retail DeFi bleeds when leverage unwinds. Institutional RWA flows are usually slower, stickier, and less narrative-driven.

Pendle’s link with Sky and its Mu Digital integration in Asian credit markets fit into this trend.

This is also why I keep coming back to the same point: the next cycle probably will not be driven only by memecoins. RWAs, stablecoins, credit, yield, and settlement are still where the more durable onchain economy is forming.

4. Lighter is still getting attention

Lighter continues to show up in the perps conversation.

The Hyperliquid alternative thesis is easy to understand: high-performance perps, Ethereum L2 angle, zk verification, and a much earlier stage profile.

But it is still early.

Stage 0 on L2Beat means trust assumptions are still high. The product can be interesting while the infrastructure risk remains real.

That is exactly why I would track it, but not treat it like a proven Hyperliquid replacement yet.

5. World Chain had a strong week

World Chain was one of the few L2s showing clear strength during the drawdown.

The growth is worth watching because it happened during a week where most dashboards looked terrible.

The caveat is the same as above: Stage 0. Strong inflows do not remove the security question.

Podcast Picks 🎧

Bell Curve: What Brings Capital Back to DeFi?

This one fits the week well.

The main question is what actually brings capital back to DeFi after a market flush. Not just better charts, but better products, clearer yield, and protocols that can survive stress.

Empire: Hyperliquid Just Had Its Breakout Moment

A good short segment on Hyperliquid’s fee dominance and why HYPE is changing how people think about perp DEXs.

Useful if you want to understand why the market keeps treating Hyperliquid like more than just another exchange token.

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That’s it for this week.

If you found this useful, share it with someone who is trying to make sense of this market.

You can also follow me on X and Farcaster for more frequent updates.

Leave a comment

Nothing in this newsletter is financial advice.

I personally use many of the protocols I write about, but that does not make them safe. Crypto is risky, DeFi is risky, and things can break quickly.

Do your own research, size positions carefully, and never invest more than you can afford to lose.

🧑‍🌾 3 Tokens I’m Watching Right Now

🧐 Onchain Analytics

📚 This Week's Intel

🎧 Podcast Picks

Hello everyone,

We are starting to see more movement in the altcoin market, especially around the Ethereum ecosystem. A few narratives are beginning to take shape again: privacy, RWAs, and Base ecosystem tokens.

In this edition of Weekly Alpha, I want to look at three tokens I’m watching right now.

ONDO Finance and the Value Capture Question

Ondo is one of the RWA tokens I’m watching most closely.

The RWA thesis keeps getting clearer: more of the stock, bond, and money market universe is going to move onchain over time

The reason is simple. Tokenized assets can trade 24/7, settle faster, move across wallets and protocols, and plug into DeFi in a way traditional assets cannot.

Ondo is one of the strongest names in that category. It already has real products, strong institutional positioning, and a clear narrative behind it.

The part I’m more cautious on is the token.

ONDO has a fixed supply of 10B tokens, with roughly 4.87B currently circulating based on recent tokenomics data. That means a large part of the supply is still locked and will keep unlocking over time.

More importantly, ONDO still looks mostly like a governance token today. Ondo’s products may grow, but that does not automatically mean ONDO captures the value.

That is the reason I have not started accumulating yet.

The bullish case is that Ondo keeps growing, RWAs keep expanding, and governance eventually introduces stronger holder economics, whether through fee sharing, buybacks, or another mechanism.

The bearish case is that Ondo the company wins, but ONDO remains mostly a governance asset while most of the economic value stays at the product layer.

That is why I’m watching it closely. The narrative is strong, the category is real, but for me the token becomes much more interesting if it starts capturing more of the value that Ondo is creating.

Ticker: ONDO

RAILGUN: Privacy On Ethereum

The second token I’m watching is RAIL.

There is a lot of social attention around privacy right now. Last week, I wrote about VVV and private AI, but the same idea applies onchain: as crypto gets bigger, users will care more about what they expose publicly.

RAILGUN is interesting because it is not trying to be a separate privacy chain. It brings privacy directly to Ethereum and other EVM networks, using zero-knowledge proofs to let users interact privately with DeFi.

That matters. If Ethereum becomes the settlement layer for RWAs, stablecoins, trading, and onchain finance, privacy becomes more important, not less. Funds, traders, DAOs, and regular users will not want every wallet movement, strategy, or position fully exposed forever.

RAIL has already moved with the privacy narrative. The token is trading around $3, after reaching an all-time high near $5.66 in November 2025. So this is not an undiscovered chart anymore, but it is still one of the names I’d keep on the watchlist if the privacy trade keeps gaining attention.

The token setup is also worth understanding. RAIL is not required to use RAILGUN, and the docs are clear that it is not a privacy coin. It is mainly a governance and security token. Users can lock RAIL to participate in governance and collect security rewards, which gives the token more utility than a pure voting asset.

The main concern is regulation.

Privacy protocols will always sit in a difficult part of the market. Tornado Cash showed how quickly this category can become politically sensitive, even when the underlying technology has legitimate use cases.

RAILGUN is different in design, and one important feature is Private Proofs of Innocence. Users can prove their funds are not associated with known high-risk sources without revealing their full transaction history.

That matters because it gives RAILGUN a stronger compliance argument than a simple “hide everything” privacy tool. It keeps the privacy layer, but adds a way for users to show non-association when needed.

Still, the regulatory risk does not disappear. If privacy becomes a major narrative again, protocols like RAILGUN could attract more attention from regulators, exchanges, and analytics providers.

That is the tradeoff with RAIL: the upside is tied to privacy becoming important again, but the downside is that privacy tokens can attract serious regulatory pressure if they become too visible.

For now, I see RAIL as a high-risk privacy bet on Ethereum. Interesting, useful, and worth watching, but not something I would treat as a clean or low-risk trade.

Ticker: RAIL

Lighter: The Hyperliquid Alternative I’m Watching

The third name I’m watching is Lighter.

If you are still active in crypto, you know the Hyperliquid narrative has been extremely strong. It makes sense. Hyperliquid has product-market fit, volume, mindshare, and one of the clearest perps stories in the market.

But when a category gets that hot, I also like to look for earlier, higher-risk alternatives.

That is where Lighter becomes interesting.

The simple way to describe Lighter is this: a high-performance onchain perps exchange with an Ethereum L2 and zk verification angle.

It sits in the same mental bucket as Hyperliquid because both are trying to build fast, liquid, trader-focused perp venues. The difference is the architecture. Hyperliquid runs its own chain with a smaller validator set, while Lighter is built as an application-specific zk rollup that settles back to Ethereum.

That gives Lighter a different narrative.

It is not just “another perp DEX.” It is a bet that traders will eventually care about speed, liquidity, and better verification. Every trade does not need to feel like a slow DeFi transaction, but users still want stronger guarantees than a fully centralized venue.

That is the bull case.

Lighter could become one of the cleaner Ethereum-native answers to Hyperliquid if it keeps improving liquidity, execution, and user experience.

But this is still early.

On L2Beat, Lighter is currently listed as a Stage 0 appchain. That means there are still meaningful trust assumptions, especially around upgrades and operational control. So I would not pretend this is already fully decentralized infrastructure.

To be fair, Hyperliquid also has centralization questions because it relies on a relatively small validator set. So the comparison is not “one is perfect and the other is risky.” Both are early in different ways.

The real question is execution.

In perps, better architecture does not automatically win. Traders care about liquidity, spreads, uptime, markets, leverage, incentives, and whether the venue actually feels good to use. If Lighter gets those right, it can become a serious competitor. If it does not, the zk angle will not matter much.

For now, I see Lighter as a higher-risk bet on the same onchain perps trend that made Hyperliquid so successful.

Hyperliquid has the lead today. Lighter is the earlier, more speculative Ethereum-aligned alternative.

Ticker: LIT

Conclusion

The market feels boring right now.

Bitcoin and Ethereum are not doing much, and most altcoins still look weak. But the interesting part is that tokens with clearer fundamentals and stronger narratives are starting to move.

That is a healthier setup than another pure memecoin rotation.

I would rather see capital flow toward real protocols, useful infrastructure, privacy, RWAs, perps, and products people actually use. That is how the industry builds a stronger base for the next cycle.

Crypto is still early, but the direction matters. If the next alt market is led by projects with actual usage instead of pure speculation, I think that is a much better market to be involved in.

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Onchain Analytics 🧐

This is where I share what I’ve actually been looking at onchain. The stuff that shapes how I’m positioning, not just what I’m buying.

Obol TVL Spikes As Ethereum Staking Demand Stays Strong

Obol’s TVL jumped sharply this week, reaching roughly $780M on DeFiLlama.

That matters because last week we looked at Ethereum’s validator queue: more than 3M ETH waiting to enter staking, an estimated wait of around 60 days, and almost nothing sitting in the exit queue.

Obol does not magically skip the validator queue. Every new Ethereum validator still has to go through the normal activation process. But the move does show that demand for more advanced staking infrastructure is still alive.

That is the cleaner read: if ETH staking demand remains high, protocols that help coordinate distributed validator infrastructure should keep getting attention.

The chart to watch is simple. If Obol TVL keeps rising while Ethereum’s entry queue stays elevated, DVT is becoming one of the places where staking demand expresses itself.

Limitless Fees Jump As Prediction Markets Expand On Base

Limitless Exchange was one of the cleaner fee movers this week.

According to DeFiLlama, the Base prediction market protocol generated roughly $1.96M in fees over the past 7 days, up about 188% week-over-week.

That is a meaningful move for a newer prediction market venue.

Polymarket still owns most of the mindshare in this category, but Limitless is showing that prediction markets are not only a Polygon story. Base is becoming a natural home for smaller, faster, cheaper onchain trading experiences, and prediction markets fit that well.

The caveat is that prediction market volume can be very event-driven. A spike in fees does not automatically mean durable adoption. It can come from one hot market, one news cycle, or one temporary burst of speculation.

Still, this is worth tracking. If Limitless keeps generating fees after the current event cycle fades, then the signal becomes much stronger.

DEX Volume Is Spreading Across More Venues

The DEX market is still active, but it is becoming more fragmented.

DeFiLlama shows roughly $41B in 7-day DEX volume across all chains. The total is only slightly higher week-over-week, but the interesting part is where the activity is showing up.

Manifest Trade did around $844M in 7-day volume. Metric did around $543M. SUNSwap V3 did around $336M.

None of these are Uniswap-sized alone, but that is the point. DEX activity is no longer only about one dominant venue. Liquidity is spreading across Solana, Tron, Base, Hyperliquid, and newer app-specific trading venues.

For Uniswap, I would not overstate the bearish read this week. The live fee data I checked does not confirm a major collapse in V4 fees. The better takeaway is broader: DEX volume is still there, but the market is becoming more multipolar.

That matters for investors because the next winner may not be “the biggest DEX.” It may be the venue that owns a specific flow: meme trading, perps, prediction markets, stablecoin swaps, or chain-native liquidity.

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This Week’s Intel 📚

Here’s what was actually worth reading this week.

1. ERC-7943 Reaches Final Stage For RWA Tokenization

ERC-7943, a new Ethereum standard for real-world asset tokenization, has reached the final stage of the EIP process.

This is not the kind of headline that pumps immediately, but it matters.

If institutions are going to bring regulated assets onchain, they need more than a token contract. They need identity, transfer rules, compliance hooks, and standards that work across different systems. ERC-7943 is trying to create that baseline.

The bigger point is simple: RWA tokenization is moving from “cool narrative” to actual infrastructure. Standards are boring until they become the thing everyone builds on.

The caveat is adoption. A finalized standard does not mean instant institutional TVL. It just makes the path cleaner.

Source: Cointelegraph

2. Base Launches MCP Gateway For AI Agents

Base launched an MCP gateway that lets AI agents connect to user Base accounts and execute onchain actions like swaps, trades, and portfolio management.

This fits directly into the agent-payment / agent-finance theme.

The important part is not just “AI agents are coming.” It is that Base is building the rails for agents to actually do things onchain. The gateway already mentions integrations with protocols like Morpho, Moonwell, Bankr, Avantis, Virtuals, Uniswap, and Aerodrome.

That makes Base one of the clearer venues for AI x DeFi experiments.

The risk is obvious: giving agents wallet permissions is still early and will need strong UX, limits, and security assumptions. But directionally, this is exactly the kind of infrastructure to watch.

Source: The Defiant

3. Aave Proposes Native BTC Borrowing Through Babylon

Aave has a governance temp check to integrate Babylon into Aave V4, allowing users to borrow against native BTC collateral without relying on wrapped BTC or centralized custody.

This is one of the more interesting DeFi proposals right now.

Bitcoin is still the largest pool of dormant collateral in crypto, but most BTC-backed DeFi depends on wrappers, bridges, or custodians. If Aave V4 can support native BTC collateral through a dedicated spoke, it could make Bitcoin borrowing feel much cleaner.

This is still early. It is a temp check, not a live product. Babylon integration adds new risk, and native BTC collateral brings different liquidation and operational assumptions.

But if this moves forward, it is a real DeFi primitive, not just another incentive campaign.

Source: The Defiant

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Podcast Picks 🎧

Podcasts worth your time this week.

How To Trade The AI Productivity Boom | Forward Guidance
A macro discussion on whether the AI boom is a real productivity shock or just a market narrative being pulled forward.
They connect AI capex, equity concentration, Fed policy, labor pressure, and the K-shaped economy.
The most useful part is how markets price productivity before it fully shows up in the real economy.
Good listen if you want a macro lens on AI, rates, and risk assets.

Is Crypto Broken? | Bell Curve
This episode asks whether crypto has lost its ability to create real apps beyond Bitcoin, Ethereum, and stablecoins.
They discuss why many tokens launched too early, before product-market fit or real value capture existed.
Stablecoins come through as one of the few obvious crypto winners, while consumer apps still feel weak.
Good listen for a sober take on what crypto needs next: products people actually use, not just narratives.

Why Hyperliquid Is Still Undervalued | The Rollup
This one focuses on Hyperliquid and why Bitwise sees HYPE as more than just another perp DEX token.
They cover ETF demand, fee generation, buybacks, and the structural demand this could create for HYPE.
The episode also touches on HyperEVM, spot markets, prediction markets, and Hyperliquid’s broader ecosystem.
Good listen if you want to understand why institutions are starting to look at Hyperliquid seriously.

That’s it for this week.

If you found this useful, share it with someone who is trying to make sense of this market.

You can also follow me on X and Farcaster for more frequent updates.

Leave a comment

Nothing in this newsletter is financial advice.

I personally use many of the protocols I write about, but that does not make them safe. Crypto is risky, DeFi is risky, and things can break quickly.

Do your own research, size positions carefully, and never invest more than you can afford to lose.

Venice: Private AI With a Product Behind It

The reason Venice caught my attention is simple: people want AI tools, but they do not necessarily want to hand over all their data to use them.

I’ve been using AI a lot, whether it is Cursor, Codex, Claude, or other tools for research and my work as a developer. The more I use them, the more obvious the privacy tradeoff becomes.

These tools are useful, but I still catch myself thinking twice before pasting in research notes, wallet activity, strategy ideas, or client work.

Local models are getting better, and I like the direction. But right now, they still do not feel as strong as the best hosted models for many workflows. That is where Venice becomes interesting: it tries to give users access to strong AI models without making them hand over everything in the process.

I had tried Venice before, but for a while it did not really stick in my workflow. It was interesting, but not good enough to replace the tools I was already using.

That has started to change. Over time, I’ve found myself using it more naturally, not because I forced myself to, but because the product has improved enough to earn more of my attention.

The founder matters too. Venice was started by Erik Voorhees, someone I’ve followed in crypto for a long time. He has been around since the early Bitcoin days, and I tend to pay attention when builders with that kind of history are working on something new.

That does not remove the risk, of course. Founder reputation is not a thesis by itself. But in a space full of thin AI wrappers and short-lived narratives, it does make Venice more interesting to me.

None of this automatically makes VVV a winner, but it does make the narrative easier to understand.

Tokenomics: What Actually Matters

The interesting part about VVV is not just that it is an AI token. There are plenty of those.

The more important part is how quickly the tokenomics have changed. Venice started with a fairly standard setup: a 100M genesis supply, a large airdrop, and high emissions for stakers.

The Supply Reset

Since launch, the direction has been clear: less loose supply, lower emissions, more staking, and a stronger link between VVV and actual Venice usage.

VVV launched with a 100M supply, and 50M VVV, or 50%, was allocated to the airdrop. The claim window lasted 45 days and included Venice users, AERO holders, and several AI-related communities.

There was one allocation issue: vAERO holders were excluded. I was one of them. I asked Erik Voorhees about it on X, and he told me it was a mistake. Annoying for me, but the more important part came after the claim window closed.

By the end of the window, around 17.4M VVV had been claimed by more than 40k wallets. That left roughly 32.6M VVV unclaimed, about 65% of the airdrop allocation and close to one-third of the original supply.

Instead of leaving those tokens sitting in the treasury, Venice burned them in one event.

That matters because airdropped tokens often struggle with loose supply and constant sell pressure. Burning the unclaimed allocation did not magically create demand, but it did remove a meaningful overhang early in the token’s life.

Venice also sold 1M VVV from the team’s unlocked allocation on launch day, then bought it back and burned it after community pushback. That shows the team was responsive, but it also reminds you that execution risk is real.

The important point: VVV did not keep the full 100M launch supply floating around. A meaningful part of the original allocation was removed early, which made the supply side cleaner than it looked at launch.

Emissions cuts

Tokenomics matter a lot for this kind of project. The product can technically run without the token, but the token is what connects usage, staking, emissions, and supply. That makes the emission schedule worth paying attention to.

Venice has cut emissions four times in under a year, from 14M VVV annually down to 5M today, with 3M targeted by July 2026, a 79% reduction in roughly 18 months.

Less new supply hitting the market each month means less structural sell pressure, which is good for existing holders. The schedule is public and credible, which is why some early positioning has already happened.

But it’s still a speculative bet. Emission cuts reduce inflation but don’t guarantee price. VVV’s value over the next year depends on product adoption, trading volume, and how the broader market treats the sector. A token with falling supply but stagnating usage doesn’t pump. And right now it’s genuinely hard to know whether the current price already prices in the full cut schedule or not.

Having some exposure here is probably reasonable. Treating the emission schedule as a guaranteed price catalyst is not.

Staking: Why The Float Matters

The next important piece is staking.

With VVV, staking is not just about earning yield. When you stake VVV, you receive sVVV, which gives you access to a share of Venice’s API capacity. So stakers are not only farming emissions. They are also reserving part of the network’s private AI compute.

That is where the model gets more interesting.

If you simply stake VVV, you keep exposure to the token, earn emissions, and get access to Venice compute through your staked position. At current parameters, the yield is around the mid-teens, although that can change over time.

DIEM adds another layer.

By locking sVVV, users can mint DIEM, a tokenized form of AI credit. Each DIEM represents ongoing API credit inside Venice. So VVV starts to look less like a normal speculative token and more like a capital asset: you lock it, and it gives you access to compute.

There is a tradeoff. If you mint DIEM, your sVVV is locked, and you receive a lower share of the normal staking yield. The rest goes back to Venice as compensation for providing the compute behind DIEM.

DIEM can then be used for API access or traded, which gives users a way to monetize compute without selling their original VVV.

The important point is that staking reduces liquid supply, but it also gives people a reason to hold the token beyond price speculation. Large stakers are not just betting on the chart. They are reserving a slice of Venice’s AI capacity.

There is still liquidity risk. Unstaking takes seven days, and during that period users do not earn yield, cannot mint DIEM, and lose staking-based API access. So staking creates real lock-in. That can be powerful when demand is rising, but painful if people want to exit quickly.

Buybacks & Burns: The Usage Link

The last piece is the buyback and burn mechanism.

This matters because it connects Venice usage back to VVV. If more people pay for Venice, part of that revenue can be used to buy VVV on the market and send those tokens to a burn address.

Venice started monthly revenue-funded burns in late 2025. The first one, in December, burned about 57k VVV using revenue from the previous month.

Then in April 2026, Venice added a more automatic version of the same idea. Every new paid subscription now triggers a VVV buyback and burn, with the amount depending on the plan: $2 for Pro, $5 for Pro+, and $10 for Max.

Those buys happen on-chain through USDC to VVV swaps, and the tokens are sent directly to the burn address. There is also a public burn tracker, so you can follow the transactions.

Put simply, more paying users means more revenue, more VVV bought from the market, and more VVV removed from supply.

A lot of tokens talk about usage, but the token itself never really captures it. With VVV, the mechanism is clearer. If Venice grows as a product, the burn program gives that growth a direct path back into the token.

So far, the numbers are already meaningful. Including the large airdrop burn and the revenue-funded burns, Venice reports that more than 33.7M VVV has been burned. Depending on whether you measure against genesis supply or adjusted circulating supply, that is roughly one-third of the original token supply and a much larger share of the current float.

That does not mean VVV only goes up. Burns are not magic. If demand falls, if emissions stay too high, or if the product stops growing, the token can still struggle.

But this is what you want to see: emissions coming down, supply being locked through staking, and real product revenue being used to remove tokens from circulation.

That is a cleaner setup than most AI tokens have.

Conclusion

Venice is one of my favorite projects to follow right now, which is why I wanted to spend time going through the mechanics instead of only talking about the narrative.

I like the founder. I like the team’s direction. More importantly, I like that the product is improving while the tokenomics are becoming more holder-friendly. That combination is rare enough to pay attention to.

My plan is simple: keep using Venice, keep tracking the numbers, and DCA over time if the thesis continues to hold.

The product itself matters here. When I first tried Venice, it felt interesting but still rough. The models were not good enough for me to use it regularly. That has changed. The experience is much better now, and I find myself using it more naturally, especially when privacy matters.

That is the bigger opportunity. Venice is not only a crypto product. It can also speak to people who care about private AI for work, research, personal use, or simply saying what they think without feeding everything into a closed system.

The bet is not just that AI stays hot. The bet is that private AI becomes useful enough for people to pay for it.

VVV is still a high-risk token, and nothing here is guaranteed. But if Venice keeps improving the product, growing revenue, reducing emissions, and burning supply, I think it has a real shot at becoming one of the stronger AI trades of the next cycle.

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Onchain Analytics 🧐

This is where I share what I’ve actually been looking at onchain. The stuff that shapes how I’m positioning, not just what I’m buying.

Hyperliquid: Fees Keep Climbing

As you probably know, Hyperliquid has been on a strong run lately, with HYPE

recently pushing to a new all-time high. But the more important part is that the protocol is still generating a lot of fees, and those fees matter because they feed back into HYPE through the Assistance Fund.

The first chart I’m watching is Hyperliquid trading fees.

According to HypurrScan, Hyperliquid has now generated roughly $1.2B in cumulative trading fees, with spot fees representing only around $35M of that total.

That tells you two things.

First, Hyperliquid is still mainly a perp machine. Spot exists, but the core business is still leveraged trading. Most of the fee growth is coming from traders using the perpetuals exchange, not from spot activity.

Second, the fee curve is still moving up. This is not a vanity metric like TVL that can sit still and look impressive. Fees require activity. Traders have to show up, place orders, take risk, and pay for execution.

That is why this chart matters. Even in a consolidating market, Hyperliquid continues to generate real trading fees at scale. For HYPE, that keeps the thesis alive: the network is not just attracting attention, it is producing measurable onchain activity.

The caveat is that this is cumulative data, so the line will almost always go up. What matters from here is the slope. If the curve keeps steepening, activity is accelerating. If it flattens, volume is slowing down.

Ethereum: The Validator Queue Is Telling A Different Story

3.46M ETH is sitting in the validator entry queue. The exit queue is at zero.

That is not a trivial gap.

Validators are not trapped. The exit queue is empty, with only the sweep delay before funds clear after exit. So this is not a case where everyone wants out but cannot leave.

According to ValidatorQueue, the estimated wait to enter staking is around 60 days. That is a meaningful commitment. Anyone joining that queue anyway is making a deliberate long-term bet on Ethereum security, yield, and settlement demand. Not a reactive one.

The asset price is not reflecting this. ETH has been quiet while other things run. The market can ignore on-chain fundamentals for long stretches, and this is not an argument that price has to move immediately.

But it does push back against the “Ethereum is dead” read. Dead protocols do not usually have 60-day validator wait lists with empty exits.

The chart worth tracking is simple: if the entry queue stays elevated and exits stay near zero, this signal holds. If entries start draining and exits pick up, the read changes. Until then, the queue is telling a different story than the price.

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This Week’s Intel 📚

Here’s what was actually worth reading this week.

• Bitcoin Billionaire Books First SpaceX Mars Mission - read

• Kalshi, Polymarket lose bids to halt Nevada and Washington gambling cases - read

• NEAR token jumps 30% amid AI hype, Arthur Hayes endorsement and scaling plans - read

• DeFi hacks shake institutional confidence as risks outpace yields - read

• Polymarket Hit By ‘Internal Top-Up’ Wallet Exploit, $700K Drained - read

• Ethereum is still a good long-term buy, according data: Analyst - read

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Podcast Picks 🎧

Podcasts worth your time this week.

That’s it for this week.

If you found this useful, share it with someone who is trying to make sense of this market.

You can also follow me on X and Farcaster for more frequent updates.

Leave a comment

Nothing in this newsletter is financial advice.

I personally use many of the protocols I write about, but that does not make them safe. Crypto is risky, DeFi is risky, and things can break quickly.

Do your own research, size positions carefully, and never invest more than you can afford to lose.

In this edition of The Weekly Alpha:

🧑‍🌾 The MegaETH Edge

🧐 Onchain Analytics

📚 This Week's Intel

🎧 Podcast Picks

The MegaETH Edge

Three hacks in four months. Less protocol innovation than we’ve seen in years. If you’ve been watching TVL charts lately, you already know the vibe. DeFi is quiet right now, and most people have moved on to the next narrative.

That’s usually when I get more interested, not less.

Bear markets are when the real positioning happens. Builders who stay focused on fundamentals, investors who put capital to work before the crowd comes back. I’ve been restructuring my portfolio over the past few weeks with exactly that mindset. No chasing yield that disappears in 48 hours. Set and forget, a few months of patience, calculated risk.

DeFi isn’t going anywhere either. It’s quietly becoming the backend of internet finance, getting absorbed into fintech infrastructure, integrating with RWA. The protocols that survive this period are the ones that will define the next cycle.

Right now my attention is on MegaETH. The farming opportunities are solid, and there’s an extra layer worth knowing about: MegaETH just launched Terminal, their official points campaign. 2.5% of total MEGA supply is being distributed over 8 weeks to users active in the ecosystem. The farms I’m covering today all count toward it, so you’re earning yield and stacking points toward that pool at the same time.

Let’s get into the best plays on MegaETH right now.

USDM on Gains Network

Gains Network’s gUSDM vault is currently offering a solid 10.33% APY. The mechanic is simple: deposit USDM, receive gUSDC in return. Clean, straightforward yield.

But the real kicker is that you’re also stacking points from the MegaETH Terminal campaign on top of that. So you’re not just earning yield, you’re positioning yourself early in the MegaETH ecosystem at the same time.

TVL is still low, which might give some people pause, but Gains Network has a proven track record across multiple chains. The reputation is there. For me, this is one of the cleaner ways to get exposure to MegaETH right now without overcomplicating things.

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USDm on AAVE V3

Yes, things got a bit messy with AAVE in April, but it remains one of the most battle-tested protocols in DeFi. They recently deployed a USDm market on MegaETH offering a 5.12% APY. Not as eye-catching as Gains Network, but you're getting more robust smart contracts and arguably a safer setup in return. That tradeoff is worth something, especially in a market where we've been reminded more than once that nothing in DeFi is truly risk-free.

If you’re bullish on MEGA itself, there’s also a MEGA(+) pool sitting at 3.58% APY, which makes this a decent spot to start accumulating while getting paid to wait.

Overall, AAVE V3 on MegaETH is the more conservative play here. If you’re just getting started in the ecosystem and want to keep things simple, this is probably where you begin.

MEGA/USDm Pool on Prism

This one is for the degens. The MEGA/USDm pool on Prism is currently pulling an estimated 70.57% APR, which is the kind of number that gets your attention fast. Liquidity is thin and volume is still finding its footing, but that’s kind of the point. You’re early.

What makes this interesting beyond the raw APR is that it’s part of the MegaETH Terminal incentive program, so you’re stacking points on top of an already attractive yield. If both MEGA and USDm continue gaining traction, this pool grows with them.

High risk, high upside. If you have conviction on the MegaETH ecosystem long term, this is one of the more aggressive ways to express that view while getting paid along the way.

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Conclusion

MegaETH hasn’t seen a real bull market yet. TVL is sitting at $707.63M, the protocol count is still thin, and MEGA’s price since launch has been ugly. I’m not going to dress that up.

But that’s also kind of the point. You’re not buying the finished product here, you’re betting on what it becomes. And the foundation is more solid than the price action suggests.

Farming MEGA rather than buying it spot is how I'm approaching it. You build exposure over time, collect yield while you wait, and avoid the timing risk of swapping stablecoins into a token that's still finding its floor. If the chain grows into its potential, the farming position starts to look smart. If it doesn't, you didn't go all in.

Is this my highest conviction position right now? No. But I don’t need it to be. A small allocation to something early, with yield on top and Terminal points stacking in the background, is exactly the kind of asymmetric setup worth having in a bear market.

The best entries rarely feel comfortable at the time.

Onchain Analytics 🧐

This is where I share what I've actually been looking at onchain. The stuff that shapes how I'm positioning, not just what I'm buying.

Bitcoin held on exchanges

This week I was looking at Bitcoin exchange balances, and the chart tells an interesting story. BTC sitting on exchanges has dropped from around 2.9 million coins in early 2025 to 2.44 million today. That’s a significant drawdown in available supply on exchanges, even as price has been struggling to hold above $80K. Less BTC on exchanges generally means less immediate selling pressure, people are moving coins off platforms and into cold storage. Historically that’s been a bullish signal.

That said, Bitcoin isn’t a clean play right now and I want to be honest about the risks. Institutions treat it as a risk-on asset, which means it’s often one of the first things they trim when macro gets shaky. Strategy is also worth watching closely here. They now hold over 818,000 BTC, roughly 3.9% of the total supply, acquired at an average cost of around $75,500 per coin. With BTC currently trading near that same level, they’re sitting close to breakeven. Saylor has been vocal that there’s no forced sell scenario, but a sustained move lower would put real pressure on that narrative.

Then there’s quantum risk, a longer term concern but one the market is starting to price in. My read is that part of Zcash’s recent momentum comes from exactly this: privacy-focused, not held by institutions, and with a different cryptographic profile than Bitcoin. Worth keeping an eye on.

Long term I’m still bullish on Bitcoin. But right now the risk/reward for a short term trade feels messy. The exchange balance data is genuinely encouraging though, and it’s the kind of signal I pay attention to when positioning for the next leg up.

Tokenized Stocks

This is probably the most underrated narrative in DeFi right now, and the numbers are starting to show it. There are now 2,246 tokenized stocks onchain, $1.43B in distributed value, up 27% in the last 30 days, and $3.11B in monthly transfer volume. Holders crossed 265,000, also up 25% in a month. The market is moving.

The core case is straightforward. You can fractionally own stocks rather than buying a full share. You can trade them 24/7 without waiting for markets to open. And instead of letting them sit idle in a brokerage account, you can put them to work in DeFi protocols, generating yield against USDC or other assets. That’s a genuinely different value proposition than what TradFi offers.

Ondo is leading this space and the backing behind them matters. Founders Fund and Pantera Capital led their Series A, with Coinbase Ventures and Tiger Global also in the cap table. They’ve since partnered with State Street, Galaxy, Fidelity, and Chainlink, and the SEC closed a two-year investigation into their tokenized equity platform in late 2025 without charges. That kind of regulatory clarity is rare and worth paying attention to. Their OUSG fund alone crossed $1.1B in TVL, and the broader RWA tokenization market they’re operating in is now sitting above $27B.

What’s also interesting is what’s happening on the perps side. Hyperliquid now has pre-IPO perpetuals for companies like Anthropic and OpenAI. That’s a different type of product but it points in the same direction: people want onchain exposure to assets they can’t easily access in traditional markets, and the infrastructure to give it to them is quietly being built.

Tokenized stocks are still early in terms of adoption, but the direction is clear. This is one of the few DeFi narratives with genuine institutional tailwinds behind it.

This Week's Intel 📚

Here’s what was actually worth reading this week.

• Bitwise Hyperliquid ETF to start trading on NYSE this Friday - read

• Kraken to Migrate Wrapped Bitcoin Tech to Chainlink as LayerZero Exodus Expands - read

• ZachXBT alleges 95% insider control of LAB token in investigation into AI terminal’s $6 billion FDV project - read

• Strive shares jump on ‘daily dividend company’ strategy as firm goes debt free - read

• Lombard Finance Dumps LayerZero, Will Use Chainlink to Power $1 Billion in Bitcoin Assets - read

• Drake Calls for Sam Bankman-Fried’s Release in New, Critically Panned Album - read

• OpenSea CMO sees tokenized Pokémon cards, Rolexes and tickets driving next NFT wave - read

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Podcast Picks 🎧

Podcasts worth your time this week.

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That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

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Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

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It’s great to be back! It’s been a while. I made the intentional decision to step away from writing and focus on other areas of my life, but I’m happy to say the newsletter is officially back. Going forward, I’ll be aiming to show up consistently with at least one post per week.

I’ve also been thinking about the Weekly Alpha edition and have some ideas to take it in a new direction. I’d love to hear your thoughts on that too.

Leave a comment

With that said, I’m writing this letter because over the last few weeks I’ve been closely observing the market, and I believe we are somewhere near the bottom.

First, the Digital Asset Treasuries are running at full speed. Strategy leads the pack with 818,334 BTC in holdings, followed by Bitmine with roughly 5,078,386 ETH held and 4.7M ETH staked.

This tells us something important: institutional investors simply don’t care about market conditions right now. That is a positive signal in a bear market, especially when retail investors seem more focused on AI than crypto. Based on this alone, it makes sense to start positioning, though caution is still warranted.

Michael Saylor put it well when he said...

Bitcoin has won. Global consensus is that $BTC is digital capital. The four-year cycle is dead. Price is now driven by capital flows. Bank and digital credit will determine Bitcoin’s growth trajectory. The biggest risk is bad ideas driving iatrogenic protocol changes.

I couldn't agree more. To me this is one of the clearest signs that crypto is maturing. We are moving away from hype driven speculation and toward a market shaped by institutional capital and real infrastructure. That changes everything about how you should think about positioning.

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Bitcoin is reacting far less to geopolitical instability than it used to, but black swan events can still happen. Whether it’s an escalating global conflict, a new virus shutting down the economy, or an oil crisis, no one can predict what’s coming. Holding high risk assets through those moments is never comfortable.

That said, I don’t personally consider Bitcoin to be a high risk asset, at least not on a long enough time horizon. Over the last ten years it has proven to be a remarkable investment and store of value. Having at least a small allocation in your portfolio remains a wise decision.

I’ve also been keeping an eye on NFTs. Over the past 30 days, top collections have risen significantly, which could be another early sign of a bull market.

Personally, I see PFP NFTs as a way to flex online, much like wearing a Rolex in real life. The interesting thing here is that crypto has been flat or down, yet NFT prices are climbing. To me, that suggests a new wave of tech-savvy buyers have entered the market and started accumulating, rather than the dynamic we saw in 2021, where liquidity flowed from Bitcoin and Ethereum into altcoins, and then from altcoins into NFTs.

This time the entry point looks different, and that distinction matters.

On the RWA front, the metrics are also looking bullish. ONDO Finance just crossed $1B in total value locked, and to me that is an early signal that traditional finance is genuinely moving into DeFi on the Ethereum ecosystem.

It might sound naive at first, but it really isn’t. ONDO is backed by Blackrock and other major institutions, and if you think about market efficiency, there are few things more efficient than tokenizing real world assets. The data speaks for itself.

Finance has always been a closed loop, so it is exciting to see traditional players stepping into DeFi. The reason it matters so much is composability. Any protocol can plug into any other protocol, and that kind of open infrastructure is exactly what DeFi needs to interface with the traditional financial system and succeed long term.

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I could go on with the bull case for crypto this year, from stablecoins to prediction markets, but I’ll keep it short for my comeback. I hope you enjoyed this format and I’d love to hear from you in the comments. If you want more letters like this one, let me know. Otherwise I’ll get back to the Weekly Alpha. As always, I could be wrong, and I’m very open to feedback.

Other news

• Starknet launches strkBTC to bring ZK-powered shielded bitcoin to its Layer 2 network - read

• Senate Banking Panel Releases CLARITY Act Draft Ahead of Thursday Markup - read

• Bitcoin miner MARA sold $1.5 billion of bitcoin as it shifts toward AI infrastructure - read

• Ark Invest buys $5.5 million worth of Circle shares as stock jumps 16% on Q1 earnings - read

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X and Farcaster

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it’s important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🧑‍🌾 How RWA Is Rebuilding Global Finance Onchain

🧐 Onchain Analytics

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

• Espresso Token Launches at $275 Million Valuation - read

• Vitalik Buterin: Hedging on Prediction Markets Could ‘Replace Fiat Currency’ - read

• Ether steadies after $540 million sell wave to outperform wider crypto market - read

• Onchain analytics tool Parsec winding down operations - read

• Crypto markets feel the chill, Base, ether.fi reorganize layer-2 landscape - read

• How Ethereum devs will use AI to boost blockchain’s development - read

• ZeroLend Latest DeFi Platform to Shut Down Amid Liquidity, Revenue Pressures - read

• Hyperliquid-Based Ventuals’ Trading Volume Surges 100% in 17 Days - read

• deBridge launches MCP, enabling AI agents to execute non-custodial cross-chain transactions - read

• Aave price tumbles as ‘most productive’ contractor leaves DAO - read

• BNP Paribas taps Ethereum for new money market fund tokenization pilot - read

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Podcast Picks 🎧

This week’s audio alpha: handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

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How RWA Is Rebuilding Global Finance Onchain

While crypto markets have been taking a beating, RWA has been telling a different story. Sure, tokens like ONDO are down significantly, but the underlying fundamentals have remained largely intact. Adoption is growing, TVL is holding, and institutional interest isn't going anywhere. That disconnect between price action and real-world metrics is hard to ignore, and it points to something worth paying attention to: RWA might be one of the better ways to diversify right now without ever leaving the chain.

Tokenized stocks

Tokenized stocks are playing an increasingly significant role in the onchain RWA economy, and protocols like Ondo Finance are leading the charge. The core value proposition is simple but powerful: you can trade 24/7 and plug directly into DeFi protocols like Uniswap. Want exposure to the S&P 500 ETF, Tesla, or Google? You can find them on Ondo Finance and put them to work like any other onchain asset.

Take tokenized NVIDIA as a concrete example. It may not be the largest holding by TVL, but its holder count and transfer volume have both climbed meaningfully over the last 30 days — a signal that Ondo is gaining momentum and, more importantly, filling a real gap for investors.

Getting in is straightforward: head to Ondo Finance, buy directly with USDC, no intermediaries, on Ethereum mainnet. Trades settle instantly — no waiting for market open, no cut-off times, no Monday morning scramble if something moves over the weekend.

That last point is where tokenized stocks genuinely outshine their Web2 counterparts. Traditional brokerages lock you into fixed hours, leaving you watching prices move without being able to act. Onchain markets don't care what day it is. It's worth noting that BlackRock clearly sees this too — their growing commitment to tokenized assets through the BUIDL fund isn't a side bet, it's a strategic signal about where capital markets are heading.

Stablecoins

Stablecoins are the backbone of Ethereum and decentralized finance, and I don’t think that point gets made enough. Whether you’re parking liquidity during a bear market, chasing yield across DeFi protocols, or simply moving value across borders without friction, stablecoins are the infrastructure everything else runs on. But not all of them are built equal.

The market is massive, $295.76B in total market cap, and right now it’s heavily concentrated. Tether and Circle’s USDC dominate the lion’s share, which raises legitimate questions about decentralization. That concentration is exactly why new entrants like Polaris are worth watching. They’re positioning themselves as a more decentralized alternative, and I’m genuinely curious to see what they bring to the table.

What’s also worth highlighting is how broad the demand actually is. Stablecoins aren’t just a tool for DeFi natives. Startups are using them to pay developers across the globe, institutions are quietly increasing their exposure, and the on-chain metrics reflect that growing appetite across the board.

On the DeFi side specifically, a few smaller players are making serious moves. USDS from the Sky ecosystem and Ethena’s USDe are emerging as strong alternatives, purpose-built for DeFi and gaining traction fast. These are the projects worth keeping an eye on as the stablecoin landscape continues to mature.

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Stablecoins deserve a place in every portfolio, not just for DeFi natives but for anyone who understands what’s at stake. Internet money is freedom. You can deploy capital across protocols like AAVE or Pendle, generate yields that most traditional banks simply can’t compete with, and maintain full control over your assets around the clock.

The utility here is hard to overstate. Stablecoins act as a hedge against a banking system that has repeatedly shown its limitations, offering an alternative layer of financial infrastructure that doesn’t ask for permission. The centralization concern is real and worth acknowledging, most of the dominant stablecoins today carry meaningful counterparty risk. But the direction of travel is encouraging. Demand for censorship-resistant money is growing globally, and that pressure will keep pushing the ecosystem toward more decentralized solutions over time.

Commodities

Commodities represent one of the most underrated opportunities in the onchain RWA space. At $7.03B in market cap, the category is still small relative to stablecoins, but the growth trajectory is hard to ignore. Over the last few months, as crypto markets pulled back, tokenized commodities quietly gained momentum, a sign that investors are looking for onchain assets that move independently from the broader market.

The space is still early and concentrated, with Tether and Paxos leading the pack. Gold dominates by a wide margin, but Oil, Silver, and even Diamond are carving out meaningful presence and growing fast.

From a portfolio perspective, tokenized gold makes a compelling case for itself. It gives you exposure to one of the oldest stores of value in history while keeping you fully onchain, no custodians, no brokerage accounts, no friction. In the context of a new financial system being built in real time, that matters. I expect the commodity market to roughly triple over the coming year, closing the gap with stablecoins enough that it starts commanding serious attention from both DeFi natives and traditional investors alike.

My take on RWA

The world is moving onchain, and the momentum behind RWA makes that clearer than ever. Tokenized stocks, stablecoins, commodities, and real estate are all growing in adoption for the same fundamental reason: you get access to global markets around the clock, and you can put those assets to work across any protocol you choose. This is what money legos actually looks like in practice.

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The opportunity for builders here is enormous. Open protocols mean anyone can come and create on top of these assets without asking for permission, something the traditional banking system has never been willing to offer. Decades in, that system has grown increasingly closed and innovation has stalled. The new generation has a real chance to rewire that, connecting global markets and building products that would have been unimaginable a few years ago.

The democratization angle is just as significant. Buying a single share of Apple was out of reach for most people in developing countries, let alone real estate or gold. Fractional ownership changes that equation entirely, opening up investment access to anyone with an internet connection and a wallet.

From a portfolio standpoint, RWA brings something crypto has always struggled to offer: stability and diversification without having to step offchain. It hedges against volatility while keeping you inside a composable, permissionless financial system.

The infrastructure of global finance is being rebuilt in the open. RWA is not a niche, it is the backend of what comes next.

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Message Yannis | DeFi insights

Onchain Analytics 🧐

This section is usually where I share my own onchain investigations, the kind of digging that helps me position myself better in DeFi. It keeps me sharp, and sharing the process openly is part of what keeps me motivated to go deeper. Today though, I’m taking a different approach. Instead of an investigation, I want to walk you through the analytics tools I rely on for my research.

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#1 Growthepie

Growthepie is my go-to for fundamental metrics across Ethereum and L2s. When it comes to positioning yourself for the medium to long term, fundamentals matter more than most people admit. Is a chain actually gaining momentum? Are wallets genuinely active, or just inflated by incentives? What does the revenue picture look like?

I’ll be honest, I’m not particularly bullish on L2 governance tokens as investments right now. But that’s not why I use Growthepie. I use it to track where liquidity is moving, so I can follow it early rather than show up late to a narrative that’s already played out.

#2 DeFiLlama

DeFiLlama is one of the most well-known open source analytics tools in the space, but most people only scratch the surface with it. Beyond TVL and general DeFi metrics, I use it heavily for airdrop research. Their dashboard for protocols without a token yet is genuinely underrated. Filter by TVL, focus on the mid to high range, and you start uncovering real opportunities to position yourself before a token even exists.

It sits firmly in my top three analytics tools for that reason alone

What I don’t see talked about enough is the API. I’m currently building my own app to streamline research for this newsletter, and the DeFiLlama API has been central to that workflow, pulling exactly the metrics I need directly into my own ecosystem, completely free. That kind of open, accessible infrastructure is exactly what public goods for Ethereum should look like, and DeFiLlama is one of the best examples of it.

If you're serious about DeFi research and not yet using DeFiLlama, start there. It's free, open source, and deep enough to support everything from casual portfolio tracking to the kind of systematic research that gives you a real edge.

#3 Token Terminal

Token Terminal is where I go when I want to go deep. It's less of a quick-check tool and more of a research environment, covering everything from RWA to lending, derivatives, and well beyond. If you learn how to read what it's telling you, it gives you a genuine edge over most market participants.

The reports are another highlight. Well-written, thorough, and particularly valuable if you're investing in DAOs or want a clearer picture of protocol fundamentals. I tend to read them on a quiet Sunday after publishing the newsletter, and they consistently spark ideas for the week ahead.

These three tools are a strong foundation for anyone looking to get serious about onchain analytics. I rely on other, more technical resources too, Dune Analytics and some of the Blockworks data among them, but those deserve their own dedicated breakdown. Let me know in the comments if that's something you'd want to see in a future edition.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X and Farcaster

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

Subscribe

In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🧑‍🌾 Where to Deploy Stablecoins: 4 Yield Strategies Compared

🧐 Onchain Analytics

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

Citadel and Ark Invest back LayerZero as it launches blockchain, partners with Google Cloud and DTCC

LayerZero launches 'Zero' Layer 1 blockchain with backing from Citadel Securities, Ark Invest, Google Cloud, and DTCC. Claims 2M TPS (~100,000x faster than Ethereum, ~500x faster than Solana). CEO: "We can bring the entire global economy onchain.".

Read the full article

Robinhood Launches Public Testnet for Ethereum Layer 2 Blockchain

Robinhood launched its public testnet for Robinhood Chain, an Ethereum L2 built on Arbitrum with $2.3B TVL. The testnet lets developers build apps for tokenized real-world assets, lending, and perpetual futures - first step toward moving all Robinhood infrastructure on-chain.

Read the full article

Other news

• Vitalik draws line between ‘real DeFi’ and centralized yield stablecoins - read

• Trend Research cuts ETH exposure by over 400K as liquidation risk rises - read

• MegaETH Unveils Token Buyback and TGE Plan - read

• Uniswap ETF enters the chat: Bitwise files a registration statement with the SEC - read

• Robinhood shares fall after earnings as crypto revenue slides 38% in Q4 - read

• BlackRock enters DeFi as institutional crypto push accelerates: Finance Redefined - read

• Binance France CEO Targeted in Home Invasion Attempt - read

• Aave Labs seeks $50M grant to redirect product revenue to DAO - read

• Ethereum Foundation co-director resigns to focus on AI - read

• Tether invests in Hyperliquid frontend Dreamcash, offering perps markets for TSLA, gold and more using USDT0 collateral - read

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Podcast Picks 🎧

This week’s audio alpha: handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

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Where to Deploy Stablecoins: 4 Yield Strategies Compared

Sky Lending SUSDS - The New 4% Standard

Sky Lending’s SUSDS pool is offering a steady 4.00% APY with nearly $5B in TVL, making it the largest stablecoin yield opportunity in DeFi right now. This represents a consistent yield that’s been stable at 4% over the past 30 days, suggesting strong demand and sustainable economics.

How it works

• Deposit stablecoins into Sky’s SUSDS savings rate mechanism

• Earn yield from Sky’s lending protocol revenue and DSR mechanics

• Benefit from MakerDAO’s rebrand momentum and institutional adoption

Current Yields: On-chain: 4.00%, 30-day average: 4.00%

Key details

• $4.87B TVL

• Ethereum mainnet

• Sky protocol smart contract risk

• Direct deposit access

My take

With $4.87B TVL and rock-solid 4% yields, Sky is becoming the new benchmark for risk-free stablecoin returns. The consistency here is impressive.

Maple USDC - Premium Institutional Yields

Maple’s USDC pool is delivering 4.4% APY with $3.71B TVL, representing one of the highest yields for traditional stablecoins. The 30-day average of 5.14% shows this pool has been even more attractive recently, though yields have compressed slightly.

How it works

• Lend USDC to institutional borrowers through Maple’s credit-based system

• Earn yield from loan interest paid by verified institutional counterparties

• Benefit from Maple’s underwriting and risk assessment framework

Current Yields: On-chain: 4.5%, 30-day average: 5.14%

Key details

• $3.71B TVL

• Ethereum mainnet

• Credit risk from institutional borrowers

• Pool delegate screening required

My take

Maple continues to offer premium yields for those willing to take credit risk. The slight yield compression from 5.14% to 4.5% suggests strong demand, but still beats most alternatives.

Ethena sUSDe - Synthetic Dollar Powerhouse

Ethena’s sUSDe is pulling in $3.63B TVL while offering 3.30% APY, down from a 30-day average of 4.35%. This synthetic dollar strategy remains one of the largest stablecoin plays, though yields have compressed as the protocol matures.

How it works

• Stake USDe tokens to earn yield from Ethena’s delta-neutral trading strategy

• Benefit from funding rate arbitrage and staking rewards

• Participate in Ethena’s synthetic dollar ecosystem growth

Current Yields: On-chain: 3.30%, 30-day average: 4.35%

Key details

• $3.63B TVL

• Ethereum mainnet

• Synthetic asset and funding rate risks

• Direct staking interface

My take

The yield drop from 4.35% to 3.30% reflects Ethena’s growing maturity and competition. Still solid for a synthetic dollar play, but the premium is shrinking.

Merkl RLUSD - Riding the Ripple Wave

Merkl’s RLUSD pool is offering 4.15% APY purely through rewards with $619M TVL, though down from a 30-day average of 4.71%. This newly launched Ripple stablecoin is seeing significant incentive programs to bootstrap liquidity.

How it works

• Provide RLUSD liquidity to earn Merkl protocol rewards

• Benefit from early adopter incentives for Ripple’s new stablecoin

• Participate in cross-protocol reward distribution mechanisms

Current Yields: Rewards: 4.15%, 30-day average: 4.71%

Key details

• $619M TVL

• Ethereum mainnet

• New stablecoin adoption risk

• Merkl rewards interface

My take

RLUSD incentives are generous but fading from 4.71% to 4.15%. Early stage stablecoin with solid backing, but rewards dependency is high.

Onchain Analytics 🧐

MegaETH Metrics: Early Growth Signals

Recently launched, MegaETH is steadily growing in terms of TVL. Performance has been solid given current market conditions, not exactly the ideal time for a launch, but builders remain undeterred by macro headwinds.

The chain currently holds $66.85M in TVL with a limited number of dApps deployed.

MegaETH recorded 149.99K active addresses yesterday, representing a 439.67% increase over the last 7 days.

On the dApp front, the ecosystem remains sparse. Kumbaya dominates the protocol rankings by a significant margin with $51.88M TVL and over 30% TVL growth in the last 30 days.

There is currently no MegaETH token, though one is expected to launch soon. This could drive a spike in activity in the mid-term, assuming the protocol finds product-market fit.

My Take

MegaETH has enormous potential, but success hinges on attracting builders and executing a strong TGE. As Vitalik has noted, the current state of L2s doesn’t make much sense; they’re not paying enough rent to Ethereum mainnet. We haven’t yet seen a real-time blockchain handle substantial user activity, so it’s difficult to predict how MegaETH will perform under load or how the token will fare post-launch.

That said, I believe there could be compelling opportunities with asymmetric risk/reward for those positioned early in the MegaETH ecosystem.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

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Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

Subscribe

In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🧑‍🌾 3 DeFi Yield Strategies While Markets Consolidate

🧐 Onchain Analytics

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

• Bitcoin Faces Renewed Scrutiny Over Quantum Computing Threat - read

• MetaMask Adds Tokenized US Stocks, ETFs via Ondo Global Markets - read

• Zama launches token, debuts privacy metric after more than $121 million shielded on Ethereum - read

• Aave winds down Avara, phases out Family wallet in DeFi refocus - read

• Vitalik Says Ethereum’s Layer 2 Vision ‘No Longer Makes Sense’ - read

• RNBW Tanks 65% Below ICO Price on First Day of Trading - read

• Vitalik Buterin offloads nearly $6.6m in ETH amid price decline - read

• Bithumb Mistakenly Airdrops $30 Billion of Bitcoin - read

Subscribe

Podcast Picks 🎧

This week’s audio alpha: handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

• The Daily Gwei: The Future of Ethereum's Layer 2 Ecosystem - listen

• Empire: Why Is Crypto Crashing? - listen

• Unchained: 'No More Dry Powder to Come Into Tokens': Why Crypto Is Down - listen

• The Rollup: How Codex Cracked Stablecoin FX - listen

• Empire: Are L1s Still Overvalued, Hyperliquid’s End Game & State of The Market - listen

• Bell Curve: Crypto’s Reality Check - listen

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3 DeFi Yield Strategies While Markets Consolidate

ETH at around $2k and Bitcoin at around $60k is not good news if you were expecting a super cycle, but it is a good moment to consolidate and build future-proof positions within DeFi. Whether with stablecoins or not, you can still put your crypto to work and earn a solid yield regardless of the market, you just need to be more strategic and more careful with your investments.

Message Yannis | DeFi insights

Strategy #1: sUSDC on Wasabi (Base)

This first strategy is very straightforward. It’s actually a protocol I discovered on the Base app called Wasabi.xyz. You can supply assets to power the leveraged market and generate auto-compounding yield on your assets.

• Supply assets to power the leverage market. Traders borrow your liquidity to execute trades, paying you interest that accrues every second.

• Yield comes from borrow interest, not trader PnL. Benefit from zero counterparty risk, full self-custody, and no lock-ups.

• Experience single-sided yields with no impermanent loss, zero fees on deposits/withdrawals, and total flexibility.

The current APY on sUSDC on Base is 8.17%. Is it worth the risk? It’s up to you, but I wouldn’t trust the protocol as much as I trust AAVE or a Uniswap pool that has been battle-tested over years.

The thing for farmers is that with the Wasabi vaults, you're accumulating points for a potential future airdrop. But as always, don't invest what you can't afford to lose.

The protocol has a TVL of $18.17m across 5 chains including Base and Ethereum. It's very low if you compare this to Hyperliquid or other leveraged protocols, so for me, I wouldn't risk too big a sum of money on this protocol. But for experimentation purposes and being an early adopter, why not?

Overall I give it a 3/5 stars. The yield on USDC is solid, there's some activity, but I'm still unsure of the sustainability of the protocol. It didn't take traction like Hyperliquid or other protocols.

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Strategy #2: Ethena sUSDe on Pendle (Plasma)

The second strategy is happening on Plasma with Pendle. This one is offering 4.59% fixed APY at the time of writing this article with the PT sUSDe token.

sUSDe is the yield-bearing synthetic dollar from Ethena, a protocol that combines yield from staked ETH and basis spread from perps and futures to create an on-chain money solution.

How it works:

• 1 PT sUSDe (USDe) earns you 4.59% fixed APY, equal to 1 USDe staked in Ethena at maturity

• 1 YT sUSDe (USDe) gives you the yield and points of 1 USDe staked in Ethena until maturity

Current Yields:

• On-chain Yield: 4.31% APY (USDe)

• Off-chain Yield: 0.12% APR (XPL)

• Plasma Rewards: 0.12% APR (XPL)

• Points: 20x Sats

Key Details:

• Conversion Rate: 1 sUSDe = 1.21964 USDe staked in Ethena

• Deposit and withdraw through Pendle Router (automatically finds best route between native minting and DEX swapping)

• Minimal risk of generating negative yield

• Built on Ethena protocol

• Initiated by Pendle Team

My take:

Unlike Wasabi, Pendle is a battle-tested protocol that’s been around for years. The fixed APY gives you certainty, and you’re not exposed to the same smart contract risks as newer protocols. The yield is lower than Wasabi (4.59% vs 8.17%), but you’re getting significantly more security and predictability. Ethena’s sUSDe has proven to be stable, and the Pendle mechanism is well understood by the DeFi community.

Overall I give this a 4/5 stars. It’s a safer play for conservative farmers who want reliable yields without taking excessive risks. The only downside is the lower APY compared to riskier alternatives.

Strategy #3: cbBTC / LBTC on Aerodrome Finance (Base)

The third strategy is also a very interesting one. For this play, you need to lock some AERO tokens to be able to vote on the pool and earn incentives with a current voting APR of 110.39%.

Pool Details:

• Pool Type: Concentrated Stable Pool (cbBTC/LBTC)

• TVL: ~$3,808,306.67

• Current Voting APR: 110.39%

• Fees: ~$967.13

• Pool Fee: 0.02%

How it works:

You lock AERO tokens (veAERO) and use your voting power to direct emissions to this pool. In return, you earn:

• Rebase APR from your locked AERO

• Trading fees from the pool

• Incentives/bribes from votes

Key Details:

• The APR on this pool is very volatile and changes based on voting dynamics

• No available incentives currently shown (could change)

• This is a concentrated stable pool between two Bitcoin-pegged assets (Coinbase BTC and Lombard BTC)

My take:

If you’re bullish on both AERO and BTC, this is a great play. I personally locked my AERO for 4 years and keep voting for pools including BTC. This one is particularly attractive because it’s a stable pool (minimal impermanent loss risk since both assets track BTC), and you’re earning the rebase APR, fees, and incentives all at once.

The 110% APR is eye-catching, but remember it’s highly dependent on voting participation and can fluctuate significantly. The longer you lock AERO, the more voting power you get, which means higher returns.

Overall I give this a 4/5 stars. Great for AERO believers and BTC holders, but requires a longer-term commitment with your AERO lock. Not suitable if you want liquidity or short-term plays.

Onchain Analytics 🧐

State of the market

The crypto market faced significant headwinds this week, with most assets experiencing sharp declines. Ethereum broke below the psychologically important $2,000 level, while the top five cryptocurrencies saw average losses of approximately 20% over the past seven days.

These sustained downward moves suggest we may be entering bear market territory.

Hyperliquid Decouples: How HIP-4 and Record Volumes are Driving HYPE’s Independent Rally

While BTC and ETH have faced significant selling pressure, Hyperliquid (HYPE) has demonstrated clear "risk-off" decoupling, gaining 24% over the last 30 days. This idiosyncratic price action is underpinned by robust protocol fundamentals rather than speculation alone. As a vertically integrated Layer 1, Hyperliquid is capturing an increasing share of the PerpDEX market, recently hitting a record 24-hour volume of $5.45 billion.

The current momentum is driven by three core pillars:

• Aggressive Token Value Accrual: Unlike protocols with inflationary emissions, Hyperliquid’s buyback-and-burn mechanism directly ties HYPE’s value to exchange throughput. With daily revenues consistently crossing $4M, the protocol is recycling organic demand into token scarcity.

• The Launch of HIP-4 (Outcome Trading): Hyperliquid is evolving beyond perpetuals with HIP-4, introducing fully collateralized, binary-settlement contracts that allow users to trade on real-world events—similar to prediction markets like Polymarket.

• Capital Efficiency: By integrating Outcome Trading into the existing HyperEVM and cross-margin framework, traders can hedge or speculate on event outcomes using the same collateral as their perpetual positions. This creates a unified liquidity hub that competitors currently lack.

The Analytic Take: While market irrationality remains a factor, HYPE’s growth reflects a shift from platform speculation to utility-driven demand. If the protocol successfully captures prediction market volume via HIP-4, it could establish a non-correlated revenue stream that sustains this trajectory regardless of BTC’s price action.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X and Farcaster

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

Subscribe

In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🧑‍🌾 Building a Resilient DeFi Portfolio

🧐 Onchain Analytics

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This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

• Bitcoin Slips Under $88K as Markets Await Fed Decision - read

• Bitwise to launch onchain vaults via Morpho - read

• Tokenized Gold Capitalization Tops $4 Billion as Spot Approaches $5,000 - read

• Theo Launches Yield-Bearing Tokenized Gold as Price Tops $5,100 - read

• Macro fears mask Ethereum’s momentum, SharpLink CEO says - read

• Ethereum treasury firm buys jet engines amid tokenization push after selling ETH - read

• Ethereum OGs Bring The DAO back in $220 Million Security Initiative - read

• Lido’s new stVaults will let L2s create their own rules for Ethereum staking - read

• Step Finance treasury wallets breached, $27M in SOL drained as STEP crashes 90% - read

• HYPE rallies 60% on staking flows and balance-sheet buying - read

• Infinex Token Launches at $300 Million Valuation - read

• Ethereum Supply Tightens With 45% of ETH Locked: Sygnum - read

• MEGA Premarket Plummets Ahead of Mainnet Launch - read

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Podcast Picks 🎧

This week’s audio alpha: handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

• Bits + Bips: Why Gold Still Leads — And How Bitcoin Could Close the Gap - listen

• Forward Guidance: The Generational Metal Squeeze Exposing Broken Sovereign Debt - listen

• The Chopping Block: Crypto Is Boring… So Everyone’s Levering Silver Now - listen

• When Shift Happens: Why Bitcoin Will Hit $6.5 Million (and is better than Gold) - listen

• Empire: The Bull Case For DePIN, RWAs on Hyperliquid & The Onchain Endgame - listen

• The Chopping Block: Monad Madness: Hype, Hate, Tokenomics & the New Crypto Meta - listen

• Bell Curve: The Infrastructure Behind Agentic Finance - listen

  
  

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Building a Resilient DeFi Portfolio (Not Just a Profitable One)

The hardest thing in DeFi, or crypto in general, isn’t making money. It’s staying in the game long enough to actually keep it.

Over the years, I’ve watched countless friends, influencers, and people I know burn out way too early. And it’s almost always the same story: they ape first, think later. Look, I get it, sometimes you gotta send it. But when you’re doing that with your entire portfolio? That’s how you last exactly one cycle.

There’s no get-rich-quick in crypto. It’s more about not getting poor slowly.

For me, aside from a small DCA, I haven’t thrown much fresh cash in over the years. But I’ve still managed to grow my portfolio exponentially. How? Consistency. Sticking with solid protocols that actually rewarded users with meaningful airdrops. Not chasing whatever shitcoin was being shilled in the group chat. Yeah, I’m looking at you, SafeMoon and all those other tokens people were hyping at my old workplace.

The portfolios that survive aren’t the flashiest. They’re the ones built to last.

Bitcoin and Ethereum: The Anchors

These are the pillars of my portfolio. This is how I’ve survived multiple bear markets without burning out. For me, blue chips are the assets I have high conviction could stand the test of time. In my case, that’s Bitcoin and Ethereum.

Both networks are decentralized enough that they won’t get shut down by some coordinated regulation, and they’ve got proven track records. I hold Ethereum because it’s a network I actually use, not just to speculate but for real stuff. Social media with Farcaster, hanging out at community events like ETH Denver and EthCC. It’s part of my life, not just my portfolio.

Message Yannis | DeFi insights

Bitcoin? That’s my savings account. My biggest hedge against the dollar. Those two together make up over 70% of my portfolio. That might be too much for some people, but that’s how I stay sane during bear markets.

Take right now, for example. Bitcoin’s sitting around $78k. The reason I’m not shaken up? Conviction. I’m convinced that over a medium to long term period, it’ll get back to all-time highs. Every cycle is the same: we dump, some people panic sell, some hold. And usually, the ones who panic sell end up regretting it. That’s not a position you want to be in.

Stablecoins: The Working Capital

As a DeFi power user in both bear and bull markets, stablecoins make up a big chunk of my portfolio, roughly 15% depending on where we are in the cycle. More in bear markets when other assets dump, less in bull runs when everything’s pumping.

I usually accumulate stablecoins by taking profits from airdrops or exiting assets I’ve lost conviction in. Here’s the key though: 90% of those stablecoins are not just sitting there. They’re working. From AAVE to Euler to more complex protocols like Pendle, I make sure they’re always generating yield. Sometimes I’m farming governance tokens that I’ll either hold or dump immediately, depending on my conviction.

This is a crucial part of my strategy. Outside of depeg risk and smart contract risk, I know I have this cushion if I need quick cash and don’t want to sell other assets at the bottom. Having that stable position matters.

One other option, depending on your jurisdiction, is taking loans against your crypto. But in my case, that’s a taxable event, so I can’t leverage it without getting hit with taxes. Basically the same as selling for me.

DAO Tokens: The Governance Plays

Most of these I’ve accumulated either with stablecoins from what I mentioned earlier or through airdrops. I rarely buy them outright, but I try to stay active in governance. Some examples: a bit of UNI from the airdrop, TIA, ENS, OP, ARB, and others.

I’ll be honest, I’m rekt on most of these positions. But here’s why I keep holding them. First, I didn’t invest direct cash to buy them, so it doesn’t sting as much. Second, I don’t think the airdrop meta is dead. I think it’s coming back in a different form, and it’s going to reward DeFi power users. The ones who actually participate in protocol governance, vote, hold the tokens, and use the apps. All of that is easily traceable onchain.

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I think the era of farm and dump is ending. Or at least, it’s becoming way more important to have one or two wallets with solid track records. And like I said, even though I don’t have strong conviction in all these DAO tokens, they weren’t cash investments. I have no problem selling if I need liquidity for something else.

NFTs and Low Caps: The Speculative Edge

Let’s start with NFTs. Honestly, I don’t recommend heavy investment in NFTs right now. I think they’ll come back eventually, but even the blue chips are way too volatile at the moment.

The reason I keep my Pudgy Penguin? I got an excellent entry at a very low price, and now it’s become part of my personal brand. I have no intention of selling short to medium term. It’s opened up amazing opportunities and connected me with great people in the community. I don’t see my Pudgy as an investment anymore, it’s more like a networking tool.

If you’re planning to invest in NFTs right now, NFA, but it might not be a great play. Even for blue chips. And the liquidity sucks.

For low cap crypto, I keep very few of them. I’m not into the moonshot, get-rich-quick mentality. If I hold a low cap, it’s because I have conviction in the project or there’s a solid team with a proven track record behind it. I’m not the guy buying the next cat or dog coin. Those are a tiny part of my portfolio.

The few times I tried to gamble on shitcoins? Got absolutely rekt. And we all know where those go in a bear market. Zero.

Final Thoughts 🧠

I think I’m ready for whatever bear market is coming. My strategy hasn’t changed since the last cycles, and I can sleep at night. Being heavy in blue chips, holding some stablecoins, and having a bit of mid to low caps keeps me sane. I’m not stressing because I know my blue chips will eventually recover after a few months or years. As long as I don’t need immediate cash, I’m good. And if I do? I can tap into my stablecoins without selling at the bottom and touching my core positions.

The shitcoins I have are basically already at zero, so I don’t even think about them. My Pudgy NFT? Not selling. I’ll keep going to community events, networking, and building my brand around it.

Drop a comment with your strategy for the upcoming bear market. What did you think of this approach? Let’s discuss.

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Onchain Analytics 🧐

While Price Drops, Validators Queue Up

Here's a metric worth watching: while ETH price is struggling, the validator entry queue has ballooned to 70 days, compared to just 3 minutes to exit. This massive imbalance suggests deep conviction among large holders, likely institutions and treasuries moving to stake their ETH positions.

The chart tells the story clearly: entry queue at all-time highs, exit queue at all-time lows. Price and fundamentals are telling two different stories right now.

Lido’s Dominance: A Double-Edged Sword

Lido Finance controls roughly half of all liquid staking assets ($26.8B), more than double its nearest competitor EigenCloud ($12.1B). While this dominance reflects Lido's product-market fit and user trust, it poses a long-term centralization risk for Ethereum. A healthier liquid staking ecosystem would see capital more evenly distributed across Lido, EigenCloud, Ether.fi, and emerging alternatives.

As the sector matures, watch for whether market forces naturally diversify this concentration or if protocol-level solutions become necessary.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X and Farcaster

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

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In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🧑‍🌾 Ethereum Stablecoin Yields in a Bleeding Market

🧐 Onchain Analytics

🔥 Want to earn yield and front-run a potential airdrop?

Try infiniFi early with my referral link

Your click supports this newsletter and gets you direct access to the protocol before it breaks out.

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

Vitalik Buterin calls for a new DAO design for onchain disputes and governance

Ethereum co-founder Vitalik Buterin is pushing for a major redesign of DAOs, arguing that current token-voting treasury models are inefficient and vulnerable to capture. He's calling for purpose-built DAOs that tackle specific infrastructure needs like oracles, onchain dispute resolution, and anti-scam registries. Buterin suggests different governance approaches for different problems: robust consensus for matters requiring compromise, and decisive leadership for high-stakes bets. With DAO tokens valued at $17.5 billion, he warns that projects building on Ethereum should treat DAO design as half their work, not an afterthought.

read the full cointelegraph article

Base App Pivots to ‘Trading-First’ Six Months After SocialFi Rebrand

Coinbase's Base App is pivoting back to a "trading-first" approach just six months after rebranding as a SocialFi-focused super app. Base lead Jesse Pollak says hundreds of thousands tried the social features, but user feedback was mixed, with many finding it "too close to web2" and overly social-heavy. The app will now prioritize finance and trading functionality, layering social features on top rather than the reverse. The move mirrors Farcaster's recent shift away from social-first and reinforces the view that blockchains work best for moving money, with Base potentially being the last major holdout of the social-first web3 approach.

read the full The Defiant article

Other news

• ZachXBT Highlights $282M Theft of Bitcoin and Litecoin in Hardware Wallet Scam - read

• Ethereum validator exit queue falls to zero as staking demand soars - read

• ETH derivatives reset and the next retail trade - read

• Paradex refunds $650K to 200 users after maintenance bug triggers liquidations - read

• Ethereum L1 Activity Exceeds L2s, But Researchers Point to ‘Address Poisoning’ - read

• Bitcoin Hovers Around $90,000 As Dollar Drops, Gold Surges - read

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Podcast Picks 🎧

This week’s audio alpha: handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

• Bell Curve: The Intersection of AI and Crypto: What Worked, What Didn’t, and What’s Next - listen

• The Chopping Block: Banks vs. Crypto: The $1T Yield Fight - listen

• Empire: AI Breaking Software Economics, CLARITY Bill, & Debating BitGo’s IPO - listen

• All-In Podcast: Coinbase CEO's Top 3 Crypto Trends for 2026 - listen

• Forward Guidance: Markets Are Entering A Wartime Economy - listen

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Ethereum Stablecoin Yields in a Bleeding Market

As markets bleed and volatility dominates price action, strategic positioning into solid stablecoin yields becomes essential for preserving capital while maintaining productive deployment. I've consistently chosen Ethereum as my settlement layer for stablecoin strategies due to its unmatched economic security and battle-tested infrastructure. With recent market conditions prompting a reassessment of my positions, I'm evaluating three stable lending markets that prioritize security over flashy APYs. These protocols offer moderate but sustainable returns, backed by substantial TVL and smart contracts that have withstood years of real-world stress testing.

syrupUSDC/USDT Pool on Maple Finance

Risk: Low to Medium 🟡
APY: 5.1%

Total Supply: $3.90B

The syrupUSDC/USDT pool offers a competitive 5.1% APY on Ethereum, translating to approximately $5,282 in annual yield on a $100K position. This represents solid returns for stablecoin strategies, particularly during bear market conditions when preserving capital while earning sustainable yield becomes paramount. Maple Finance’s institutional-grade underwriting and multi-year track record provide additional comfort for those seeking a reliable parking spot for Ethereum-based stablecoins without chasing unsustainable rates.

RLUSD on Euler Finance

Risk: Medium 🟡
APY: 7.62%
Total Supply: $189.96M

RLUSD on Euler Finance

Euler Finance has been my go-to protocol for stablecoin positions on Arbitrum, and this RLUSD pool on Ethereum has caught my attention with its attractive 7.62% APY. The yield is currently boosted by a rewards mechanism running until January 29th, likely incentivized by Ripple to drive adoption of their stablecoin on Ethereum. While an extension of the program isn’t guaranteed, the base rate remains compelling even without additional incentives.

RLUSD represents Ripple’s entry into the stablecoin market, and despite my general skepticism toward Ripple’s ecosystem, the fact that this deployment sits on Ethereum’s secure settlement layer combined with Euler’s battle-tested infrastructure makes it an attractive opportunity for above-average stablecoin yields.

Beyond the APY, this pool offers valuable diversification away from the USDT/USDC duopoly. With ongoing regulatory uncertainty and periodic FUD surrounding both Tether and Circle, allocating a portion of stablecoin holdings to alternative assets like RLUSD on a smaller scale helps mitigate concentration risk. As the saying goes, never put all your eggs in one basket, especially when those baskets face persistent scrutiny.

GHO on Fluid Lending

Risk: Low 🟢
APY: 5.77%
Vault Total: $24.928M

Fluid Lending has established itself as a solid protocol with substantial TVL, and the GHO pool offers an attractive 5.77% APR, composed of 4.79% in GHO rewards plus 0.98% in Fluid’s native token. As Aave’s native stablecoin, GHO represents an interesting opportunity to gain exposure to the ecosystem that dominates DeFi lending while earning sustainable yields.

I’ve been consistently impressed with Fluid’s execution and innovation, and the protocol continues to present compelling opportunities for strategic positioning. If there’s interest, I’m considering launching a detailed tutorial on maximizing Fluid positions, so leave a comment if you’d like to see that content.

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While I’m not currently allocated to this pool, I’m evaluating GHO as a potential destination for reallocating capital from higher-risk assets during this market downturn. As a long-term Aave bull, gaining exposure to GHO at these levels while earning 5.77% feels like a strategic play, especially for DCA strategies. Yes, GHO is relatively new compared to USDT or USDC, but modest exposure to emerging stablecoins backed by proven protocols can be valuable for diversification. The 5.77% APR isn’t flashy or “degen” by any means, but that’s precisely the point of this analysis: finding sustainable, inflation-beating returns that prioritize capital preservation. In bear markets, we take the small wins.

Onchain Analytics 🧐

Bitcoin Exchange Reserve Dynamics

The chart reveals a compelling inverse relationship between Bitcoin held on exchanges and price action. From February through October 2025, exchange reserves (purple line) declined steadily from approximately 2.85M BTC to 2.45M BTC while price (black line) remained relatively resilient within the $100K-$120K range despite notable volatility. This inverse correlation typically indicates accumulation by long-term holders, reducing available supply on exchanges and alleviating selling pressure.

However, late December 2025 marks a critical inflection point. Exchange reserves have plummeted from ~2.45M BTC to 2.35M BTC as of January 18, 2026, while price simultaneously collapsed to $88.6K. Unlike the earlier period’s gradual reserve reduction, this rapid dual deterioration signals panic-driven behavior. Holders are aggressively withdrawing coins from exchanges, likely to either secure holdings amid uncertainty or realize losses.

The severity and velocity of this movement warrant concern. Such dramatic reserve depletion during a price collapse historically precedes heightened volatility and potential capitulation events, particularly in derivative markets where reserve dynamics often serve as leading indicators of major price swings.

Aave's Market Dominance

The stacked chart illustrates Aave’s commanding position in the DeFi lending sector, where it maintains over 50% market share with the protocol shown in green vastly outpacing competitors such as Morpho, Maple, and Venus. Through late 2025 and into early January 2026, Aave’s active loans have remained steady between $23B and $23.8B, even as the broader crypto market experienced significant stress with Bitcoin falling below $90K amid geopolitical pressures.

The line chart reveals the protocol’s resilience over time, showing only minimal fluctuation from December’s $30B peak to current stable levels. Notably, this stability comes as the total sector has grown to $26.8B in active loans, suggesting that Aave is not only retaining its position but maintaining borrower confidence during uncertain times.

This performance amid early 2026 market headwinds points to the continued maturation and growth potential of DeFi lending as a sector. Aave’s ability to hold steady likely stems from its borrower-friendly features, including flexible collateral options and competitive rates, which have helped the protocol approach nearly $1T in cumulative loan issuance since inception.

The reason for this placement is that you want readers to first see the market share distribution when you introduce Aave’s dominance, then immediately after discussing the dollar amounts and timeframes, you show them the temporal trends that prove the stability you’re describing.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X and Farcaster

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

Subscribe

In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🔓 Vesting Watch

🚁 3 Airdrops to farm on Hyperliquid

🧐 Onchain Analytics

📊 Token Watch (NEW)

🔥 Want to earn yield and front-run a potential airdrop?

Try infiniFi early with my referral link

Your click supports this newsletter and gets you direct access to the protocol before it breaks out.

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

EF Outlines L2 Interop Layer to Make Ethereum ‘Feel Like One Chain Again’

The Ethereum Foundation announced a new initiative called the Ethereum Interoperability Layer (EIL) on August 29, aimed at making the fragmented Ethereum ecosystem feel like a unified blockchain again. The EIL will enable seamless cross-Layer 2 transactions while maintaining Ethereum's core principles of censorship resistance, privacy, and security. Currently, users face a 3.5-day waiting period when withdrawing funds from Layer 2 chains like Base or Optimism back to Ethereum mainnet. The foundation is also researching ways to reduce Ethereum's finality time from the current 13-19 minutes down to seconds, and plans to publish a design document for the new layer in October. This effort aligns with Vitalik Buterin's recent proposals for faster withdrawals using zero-knowledge proofs and other advanced technologies.

Read the full the Defiant article

Justin Sun blacklisted after a brutal drop of WLFI token

The WLFI token crashed 61% shortly after launch, tumbling from $0.47 to $0.18. Justin Sun, a key early investor and political ally of Trump’s digital asset push, found his address blacklisted, freezing nearly $600 million worth of unlocked tokens. While WLFI officials hint at manipulation, Sun insists his transactions were harmless technical tests. The dispute has escalated into a wider battle of narratives across the crypto community, leaving retail investors with heavy losses while Sun’s large locked position remains intact.

Read the full Cointribune article

Other news

• Hyperliquid Could Launch USDH Stablecoin in Next Network Upgrade - read

• Euro stablecoin push runs into thin liquidity - read

• 7 largest Ether treasury companies right now ranked by holdings - read

• ARK Invest Snaps Up $23.5M in BitMine - read

• Ethereum Foundation to Unload Another 10K ETH - read

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Podcast Picks 🎧

This week's audio alpha—handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

• The Rollup: The Truth Behind Story Protocol - listen

• Bankless: ETH Hits All Time High, But Will It Stick? - listen

• Forward Guidance: Gold is the Only Trade Left - listen

• Empire: Are DATs Sustainable, Stripe Launches Tempo & WLFI’s Token Launch - listen

• The Chopping Block: Garbage Moat or Next Big Thing? WLFI Breakdown - listen

Vesting Watch 🔓

Token unlocks to watch this week. Expect potential volatility around these dates as new supply hits the market.

• MOVE (1.89% of released Supply) – September 09

• AXS (0.25% of released Supply) – September 09

• APT (2.20% of released Supply) – September 11

• MOCA (0.06% of released Supply) – September 12

• STRK (5.98% of released Supply) – September 15

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5 Airdrops to farm on Hyperliquid

Hyperliquid is one of the fastest-growing protocols right now, and I don't think the airdrop meta is dead - even though it's evolved significantly over the past few years.

With more airdrop farmers entering the space, increased liquidity requirements, and stronger sybil resistance mechanisms, it's become crucial to position your capital strategically in legitimate, high-potential projects rather than just farming everything.

1. Kinetiq

Kinetiq is a non-custodial liquid staking protocol built on Hyperliquid L1. Users can stake their HYPE tokens and receive kHYPE in return - a liquid, yield-bearing token that represents their staked position while remaining fully composable across DeFi protocols.

Playbook:

• Stake your HYPE tokens to receive kHYPE

• Earn 2.22% APY on your staked position

• Accumulate Kinetiq points for potential future rewards

2. Hypervault

Hypervault Finance is a multichain yield optimization platform that automatically maximizes returns for users

Playbook:

• Deposit into any available vault to start earning yield

• Accumulate points automatically as you earn

• Climb the leaderboard for potential airdrop rewards

3. BrownFi

An enhanced automated market maker (AMM) built on Elastic's parameterized limit order book technology.

Playbook:

• Swap tokens on Hyperliquid DEX to generate trading volume

• Provide liquidity to HyperVM pools to earn fees and points

• Focus on major pairs for better rewards and lower impermanent loss risk

Token Watch 📊

Boundless (ZK Coin)

Boundless hasn't launched yet, but I'm bullish on their potential given the ZK infrastructure they're building for Ethereum and other chains. The universal proving network could become critical infrastructure as more protocols need ZK computation.

The Kaito launchpad for Boundless pre-TGE has already closed, which required KYC verification anyway. I'm personally skeptical about sharing identity documents across multiple platforms, so I'll wait for the TGE and pick up tokens on DEXs instead. Sometimes patience pays off with better entry points anyway.

What is Boundless?

Boundless is a universal ZK proof generation protocol that allows independent prover nodes to generate zero-knowledge proofs for any blockchain, rollup, or application without requiring changes to existing networks.

What is ZK Coin?

ZK Coin (ZKC) is the native token that secures the Boundless network by requiring provers to stake it as collateral before generating proofs, with more ZKC locked as network usage grows and slashed stakes burned to reduce supply.

Onchain Analytics 🧐

Tether's $5B Fee Dominance: The Stablecoin Infrastructure War Is Over (for now)

Tether has cemented its position as the undisputed king of stablecoin infrastructure, generating $5.0B in fees over the past 365 days and capturing 64.5% of total stablecoin fee revenue. This represents one of the most dominant positions in all of crypto, with Tether processing more fee volume than most major blockchains. Circle follows as a distant second with $2.0B in fees (25.5% market share), while the remaining 90% of market participants fight for scraps with Ethena ($378M), Sky ($364.7M), and Usual ($26.7M) rounding out the top five.

The fee metrics reveal Tether's transition from controversial early mover to essential crypto infrastructure. At $5B in annual fees, Tether likely generates more revenue than most Fortune 500 companies while operating with minimal overhead. The 64.5% market dominance suggests network effects have kicked in, where users choose Tether not just for stability but for liquidity and universal acceptance across exchanges and protocols. Unlike the blockchain wars where multiple chains can coexist, stablecoins exhibit winner-take-most dynamics since users prioritize liquidity depth and merchant acceptance over technical features. When institutions and retail users collectively generate $7.8B in total stablecoin fees annually, it demonstrates that crypto has found genuine utility in payments and treasury management, with Tether capturing the lion's share of this value creation.

Ethereum Stablecoins Hit $153.6B All-Time High: The Digital Dollar Infrastructure Reaches Maturity

Ethereum stablecoins have reached a historic $153.6 billion market cap, surging +$3.649B (+2.43%) over the past week to establish a new all-time high. This milestone represents more than just numbers—it signals that Ethereum has become the primary settlement layer for digital dollars, processing more stablecoin value than most national economies. USDT's commanding 48.92% dominance demonstrates that despite regulatory uncertainties, users prioritize liquidity and universal acceptance over technical features, with the market consolidating around proven infrastructure rather than fragmenting across competitors.

The sustained growth from under $30B in 2020 to today's $153.6B peak reflects institutional adoption moving beyond speculation into genuine economic utility. At this scale, Ethereum stablecoins have achieved the liquidity depth necessary for large institutional operations, creating self-reinforcing network effects where increased adoption drives better liquidity, attracting even more institutional users. The 2.43% weekly growth indicates healthy, sustained demand from businesses using stablecoins for cross-border payments, DeFi protocols, and treasury management—proving that crypto has found its killer app in reimagining how digital dollars move through the global financial system.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

Subscribe

In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🔓 Vesting Watch

🚁 The Intelligent Investor's Crypto Risk Management Blueprint

🧐 Onchain Analytics

🎯 Airdrop Alpha (NEW)

📊 Token Watch (NEW)

🔥 Want to earn yield and front-run a potential airdrop?

Try infiniFi early with my referral link

Your click supports this newsletter and gets you direct access to the protocol before it breaks out.

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

Ethereum Hits New All-Time High Following Russell 2000 and Dow Jones Breakouts

Ethereum hit a new all-time high of $4,845 (with an intraday peak of $4,882) on August 22, gaining over 14% and bringing its 2025 returns to approximately 45%—significantly outpacing Bitcoin's 25% year-to-date gain. The crypto rally coincided with strong equity market performance, as the Dow Jones surged over 800 points (1.9%) to its first record close of 2025, while small-cap stocks led the charge with the Russell 2000 jumping 3.9%. This synchronized rally across crypto and traditional markets was driven by renewed optimism around potential Federal Reserve rate cuts as early as September, following dovish signals from Chair Jerome Powell. The broad-based strength suggests growing institutional appetite for risk assets and renewed confidence in both emerging digital assets and traditional blue-chip sectors.

Read the full blockchainreporter article

Digital Asset Treasury Companies Drive New Wave of Corporate Crypto Holdings

Digital asset treasury companies now control over $100 billion in crypto holdings, with 98 firms raising $43+ billion since June to buy Bitcoin and other tokens. While MicroStrategy leads with $73+ billion in Bitcoin, the trend is expanding beyond BTC, companies are increasingly holding Ethereum, Solana, and emerging altcoins like Sui and Ethena's ENA for yield generation and strategic alignment. This shift represents a fundamental change in corporate treasury management, though volatility and regulatory risks remain key concerns for public companies betting their balance sheets on digital assets.

Read the full The Defiant article

MetaMask adds Google and Apple logins to streamline wallet setup

MetaMask has introduced a new "social login" feature that allows users to create, back up, and restore their crypto wallets using Google or Apple accounts, eliminating the traditional barrier of managing 12-word recovery phrases that have long deterred newcomers to cryptocurrency. Powered by Web3Auth, this update is currently available on browser extensions and will soon expand to mobile, automatically syncing networks, tokens, and accounts across devices to streamline the onboarding process. While this change makes wallet access more user-friendly and familiar, it introduces trade-offs including dependencies on third-party providers and potential privacy and centralization concerns, though users can still maintain traditional recovery phrases as backup to mitigate risks if they lose access to their social accounts.

Read the Blockworks article

Hyperliquid Captures 80% of DeFi Derivatives Market with $30B Daily Volume

Hyperliquid has achieved dominance in decentralized perpetuals trading, processing up to $30 billion daily and controlling over 80% market share according to a new RedStone report. The platform's success stems from three key innovations: fully on-chain order books delivering CEX-level performance, HIP-3 permissionless market creation that incentivizes builders with revenue sharing, and a dual-architecture design (HyperCore + HyperEVM) enabling novel financial primitives.

With $2.2 billion TVL and $330 billion in monthly volume, the self-funded exchange demonstrates how technical execution can outcompete venture-backed competitors. The platform's builder-first approach and infrastructure-level positioning suggest it's becoming foundational infrastructure for on-chain finance rather than just another DEX.

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Podcast Picks 🎧

This week's audio alpha—handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

• The Rollup: The Truth Behind Story Protocol - listen

• Bankless: Will Crypto Peak in 2025… or Run Into 2026? - listen

• When Shift Happens: Why Crypto Needs Wall Street to Go Mainstream - listen

• Forward Guidance: How to Measure Market Froth & Systemic Risk - listen

• The Chopping Block: Robinhood’s Vlad Tenev Claps Back: From Memecoins to Real Assets - listen

Vesting Watch 🔓

Token unlocks to watch this week. Expect potential volatility around these dates as new supply hits the market.

• JUP (1.78% of released Supply) - August 28

• OP (1.90% of released Supply) - August 31

• DYDX (0.59% of released Supply) - September 01

• SUI (1.25% of released Supply) - September 01

• ENA (0.64% of released Supply) - September 02

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The Intelligent Investor's Crypto Risk Management Blueprint

The difference between crypto millionaires and cautionary tales isn't luck or timing, it's risk management.

While everyone focuses on which coins to buy, the real alpha lies in knowing when to sell, how much to risk, and how to survive the inevitable 80% drawdowns. This isn't about playing it safe; it's about playing it smart. The most successful crypto investors aren't the ones who hit every moonshot, but those who consistently compound gains while avoiding catastrophic losses. Here's your blueprint for building generational wealth without losing your shirt.

Portfolio Diversification Never allocate more than 5% of your total portfolio to any single altcoin, regardless of conviction. Spread exposure across blue chips (40%), established DeFi (30%), emerging narratives (20%), and high-risk plays (10%). Remember that crypto correlations approach 0.9 during crashes, so geographic and sector diversification within traditional assets remains crucial.

Profit-Taking Strategies Implement systematic exit rules before euphoria hits: sell 25% at 2x, 50% at 4x, 75% at 10x. Use reverse DCA by taking profits weekly during parabolic moves. Set trailing stops at 30-50% below recent highs to protect gains while allowing for continued upside. The goal isn't to time the top but to ensure you never give back life-changing money.

Safe Harbor Assets Rotate profits into yield-generating stablecoins rather than holding cash. Aave's USDC pools offer 4-8% APY with minimal smart contract risk. Consider Bitcoin as your crypto allocation's defensive anchor, typically 30-50% of total crypto exposure. During bull markets, resist the urge to rotate BTC into alts until you've secured profits elsewhere.

DeFi Risk Management Stick to protocols with $1B+ TVL and multiple audits. Never chase 100%+ APY yields during market euphoria; they signal unsustainable tokenomics. Diversify across 3-5 different protocols to avoid single points of failure. Always keep 20% of DeFi allocation in blue-chip protocols like Aave or Compound as stability anchors.

Psychological Safeguards Create separate wallets: one for long-term holds you never touch, one for trading. Remove your initial investment once positions reach 200-300% gains to eliminate emotional attachment. Set calendar reminders to reassess risk allocation monthly, not daily. Write down your sell targets when sober and stick to them when euphoric.

Market Cycle Awareness Monitor exchange inflows and long-term holder distribution to gauge cycle positioning. When retail FOMO peaks and your barber asks about crypto, begin rotating to safer assets. Maintain 6-12 months of living expenses in traditional savings as your bear market survival fund. Bull markets make you feel like a genius; bear markets reveal who actually had a plan.

Tax-Efficient Strategies Harvest tax losses in December to offset gains. Use FIFO accounting to minimize short-term capital gains where possible. Consider taking profits across multiple tax years to stay within lower brackets. Keep detailed transaction records; the IRS is watching. Remember: paying taxes on crypto gains means you actually made money.

Token Watch 📊

REX Token

Etherex is a decentralized exchange on Linea that launched in late July and has quickly become the #2 protocol by TVL on the network, trailing only Aave. With $177M in TVL and consistent growth.

The protocol has already generated $1.39M in net income for REX token holders since launch.

This looks like bullish mid-term play if Linea continues scaling. We could see similar dynamics to Aerodrome Finance on Base, where the primary DEX captures outsized value as the ecosystem grows. Etherex is positioning itself as Linea's liquidity hub, offering attractive yields like 11% APR on the USDC/USDT stable pair to bootstrap liquidity.

The token currently trades at $0.348 with weak chart action, but the real catalyst is a potential Linea token airdrop. If Linea launches governance tokens and drives user migration to the network, Etherex should capture significant fee flow as the dominant trading venue. You can farm REX tokens by providing liquidity to protocol pools, creating a natural accumulation strategy.

The risk-reward favors holding through a Linea airdrop event. Until then, Etherex offers both yield farming opportunities and exposure to Linea's ecosystem growth.

Airdrop Alpha 🎯

Football.Fun - Fantasy Football Meets Token Trading

Football.Fun combines fantasy football with asset trading mechanics in a free-to-play format. Instead of setting weekly lineups, you collect player shares through pack openings and trade them like tokens based on real-world performance. Players automatically compete in twice-weekly tournaments, earning you Gold rewards when they perform well on the pitch

.

The game operates on three main strategies: passive accumulation of undervalued players, fixture-based trading around favorable matchups, or pure market speculation buying low and selling high. Currently in Gold Rush beta with no deposit required, rewards include physical kits and tokenized squads for the full launch.

Unlike failed platforms like Football Index, this is genuinely free-to-play without real-money gambling mechanics. The sustainable tokenomics and transparent financial model address the issues that killed previous football trading platforms. Early beta participation could position you well for potential airdrops when the platform fully launches with its native token economy.

Worth checking out if you understand football markets and want exposure to a potential gaming token play with actual utility beyond speculation.

How to Play Football.Fun

The core gameplay revolves around pack opening, trading, and passive tournament participation. You start by ripping player packs to build your initial squad, collecting shares in real footballers from Europe's top leagues. Each player has a market value that fluctuates based on real-world form and performance.

Trading happens continuously using Gold as the in-game currency. Buy undervalued players before good fixtures, hold performers during hot streaks, or flip based on market sentiment. Unlike traditional fantasy football, there are no lineups to set. Your entire squad automatically enters twice-weekly tournaments, earning Gold rewards when your players perform well in actual matches.

The strategy layer comes from portfolio management: diversify across leagues and positions, time your trades around fixtures and transfer windows, and balance between holding for tournament rewards versus quick trading profits. Squad value is your main metric, combining individual player valuations with accumulated Gold reserves.

Currently free-to-play during beta, making it a zero-risk way to learn the mechanics and potentially position for future tokenized rewards when the platform launches its full economy.

Airdrop Potential

With $6.77M TVL already locked on Base and significant social media buzz, Football.Fun shows early traction that often precedes major airdrops. The platform is building genuine user engagement and economic activity during its beta phase, creating the foundation for a valuable token distribution event.

Early players who accumulate Gold, build valuable squads, and participate in tournaments are likely establishing on-chain history that could be rewarded when the platform tokenizes. The combination of TVL growth, active trading volume, and user acquisition suggests Football.Fun is serious about building sustainable tokenomics rather than just extracting value.

Getting positioned during the free-to-play beta costs nothing but time, while creating potential upside if the platform follows the typical path from beta to token launch. The Base ecosystem has been rewarding early adopters of quality projects, and Football.Fun's sports-focused niche could capture significant value in the growing GameFi sector.

Worth dedicating some time to build up your profile and squad value before the inevitable transition to paid mechanics and token rewards.

Onchain Analytics 🧐

Ethena's Synthetic Dollar Surge: $12B TVL Explosion Signals USDe Adoption

Ethena has experienced explosive growth in 2025, with TVL rocketing from around $5B in early 2025 to $11.9B currently, representing a near-doubling in just months. The protocol's synthetic dollar USDe has found genuine DeFi-market fit, evidenced by $1.147B in annualized fees flowing through the system. At $405M in annual earnings with zero incentive spending, Ethena demonstrates that sustainable yield can attract capital without requiring token emissions or artificial subsidies. The dramatic TVL acceleration starting around April 2025 suggests institutional adoption of delta-neutral stablecoin strategies has reached an inflection point.

The metrics reveal Ethena's positioning as a serious DeFi primitive rather than a DeFi 2.0 experiment. With $549M in daily trading volume and $146M in liquidity, USDe has achieved the scale necessary for institutional use cases. The protocol trades at roughly 10.6x annual earnings based on its $4.3B market cap, indicating reasonable valuation for a high-growth DeFi protocol. Most tellingly, the $6.6B in outstanding fully diluted valuation against $9.7B fully diluted suggests strong token distribution and community ownership. When a synthetic stablecoin can generate $1.1B in annual fees while maintaining $12B in deposits, it proves that users will pay for yield stability in an otherwise volatile crypto landscape.

Ethereum's Stablecoin Dominance Strengthens as L2s Drive Multi-Chain Growth

Ethereum continues to dominate the stablecoin landscape with approximately $140 billion in supply, representing over half of the total $270 billion market as of August 2024. The network's stablecoin supply has grown consistently from around $60 billion in August 2021, demonstrating sustained demand for digital dollars on the world's largest smart contract platform. This growth occurred despite increased competition from alternative chains, highlighting Ethereum's sticky network effects and deep DeFi liquidity that keeps institutional and retail users anchored to the ecosystem.

The emergence of Ethereum Layer 2’s tells an even more bullish story for the broader Ethereum ecosystem. Arbitrum and Polygon PoS have carved out meaningful stablecoin market share, collectively holding billions in digital dollar supply that complements rather than competes with mainnet Ethereum. Base's rapid ascension in 2024 further validates the L2 thesis, showing that users prefer Ethereum's security guarantees paired with improved transaction costs and speed. When combined, Ethereum mainnet plus its L2 ecosystem likely commands 60-65% of total stablecoin supply, creating a moat that alternative L1s struggle to breach.

The data reveals that while Tron captured significant market share through ultra-low fees, Ethereum's multi-layered architecture is positioning it for long-term dominance. As institutional adoption accelerates and regulatory clarity improves, the security and decentralization trade-offs become more critical than marginal transaction cost savings. The steady growth across Ethereum's L2 ecosystem suggests that scaling solutions are successfully retaining users who might otherwise migrate to competing chains, reinforcing Ethereum's position as the primary infrastructure for the digital dollar economy.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

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None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

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In this edition of The Weekly Alpha:

📚 This Week's Intel

🎧 Podcast Picks

🔓 Vesting Watch

🚁 The 2025 playbook for Airdrop (Teaser)

--- 💎 PREMIUM SUBSCRIBERS 💎---

🚁 The 2025 playbook for Airdrop (Full Analysis)

🧐 Onchain Analytics 🔒

🎯 Airdrop Alpha 🔒 (NEW)

📊 Token Watch 🔒 (NEW)

🔥 Want to earn yield and front-run a potential airdrop?

Try infiniFi early with my referral link

Your click supports this newsletter and gets you direct access to the protocol before it breaks out.

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

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Saylor’s Strategy started buying Bitcoin 5 years ago. It's now up 2,600%

My Personal Take:

Strategy's execution has been brilliant. Five years ago, they started their Bitcoin accumulation strategy, which has helped their share price surge nearly 2,600% since 2020 and revived the company from a 20-year lull. What makes this even more impressive is that early Strategy investors actually outperformed Bitcoin itself during this period—a leveraged play that paid off spectacularly.

The timing couldn't have been better. Strategy's share price had been stuck mostly floating around $10 to $20 for two decades after their accounting scandal in 2000. Bitcoin gave them a second life, and they executed flawlessly.

Now we're seeing the same playbook emerging with Ethereum. Companies like Sharplink and Bitmine are building ETH treasuries, potentially setting up similar opportunities. While there are no guarantees, I believe the risk-reward profile is compelling enough to warrant strategic positioning in these ETH treasury plays.

The thesis is simple: As ETH prices rise, these leveraged corporate holdings should amplify returns. But the downside risk is equally real—if crypto enters a prolonged bear market, these stocks could get crushed.

My position: I'm willing to take calculated risks on this emerging trend, but investors need to understand they're essentially buying leveraged crypto exposure through traditional stocks.

Read the full Cointelegraph article here

Etherex on Linea Crosses $120 Million TVL Mark Through (3,3) Mechanism

Etherex, the recently launched V(3,3) DEX, has achieved significant traction since its token launch, surpassing $120M in Total Value Locked (TVL) and establishing itself as the most-used DApp on Linea. This milestone reinforces the continued strength of the V(3,3) model, which has proven successful across multiple chains—most notably with Aerodrome dominating Base and Velodrome leading on Optimism.

Token Metrics:

• Current price: $0.41

• Fully diluted valuation: $147.9M

• Max supply: 353.5M REX tokens

For investors seeking exposure to the Linea ecosystem, REX presents an intriguing opportunity—assuming the protocol maintains its growth trajectory. The investment thesis extends beyond the protocol itself to include a bet on Linea's broader adoption.

Market Context: To put this in perspective, Aerodrome Finance currently holds $599.54M in TVL, suggesting significant upside potential if Etherex can capture a similar market position within the Linea ecosystem. This makes REX both a protocol play and a strategic bet on Linea's continued development as a Layer 2 solution.

Read the full The Defiant article here

Abstract mining game Bigcoin plots comeback after BIG crash

Bigcoin, an Abstract-based crypto “mining” game that boomed and then busted earlier this year, is making a comeback under new community-led management. Originally launched by an anonymous creator known as “Bigtoshi,” the game let players buy virtual rooms, install quirky pixelated rigs, and mine the in-game token, BIG. After an April surge to nearly 70,000 users, activity and token prices crashed — down 93% from the peak — amid Ponzi accusations. Now, led by prominent community member “BoredElon” and others, Bigcoin 2.0 has turned its rigs into 29,000 NFTs on OpenSea to fund development and improve liquidity. Over half of mined BIG has been burned, and early buyers of the new NFTs suggest some renewed faith in the project’s “fair token launcher” vision. Whether this revival will stick remains to be seen.

Read the full Blockworks article here

Lost your crypto password or seed phrase? Here’s what actually works in 2025

In 2025, losing access to your crypto wallet remains a common and sometimes costly problem, but recovery options depend heavily on the wallet type. Custodial wallets from exchanges like Coinbase or Binance can often be restored through password resets and ID verification, while non-custodial wallets like MetaMask or Ledger require the seed phrase for recovery. Without both the password and seed phrase, regaining access is usually impossible. The article warns against scams from fake recovery firms, advising users to seek services with no upfront fees, transparent processes, and verified track records. For high-value cases, advanced methods like brute-force tools, blockchain forensics, or legal action may be worth considering, though success is never guaranteed.

Read the full Cointelegraph article here

Podcast Picks 🎧

This week's audio alpha—handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

• The Rollup: We Asked an RWA Expert About Asset Tokenization. - listen

• Bankless: Vitalik Buterin: How Ethereum Becomes The World Ledger - listen

• Forward Guidance: Markets Are Underestimating the Risk of a 10–15% Correction - listen

• Bell Curve: The Best of Bell Curve - listen

• The Chopping Block: Circle’s Arc & Stripe’s Tempo Chains; Monero 51% Attacked - listen

Vesting Watch 🔓

Token unlocks to watch this week. Expect potential volatility around these dates as new supply hits the market.

• KAITO (10.85% of released Supply) - August 20

• MURA (1.09% of released supply) - August 23

• VELO (0.83% of released supply) - August 25

• VENOM (2.28% of released supply) - August 25

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The 2025 playbook for Airdrop 🔗

Airdrops aren't dead—they're just getting selective.

While crypto Twitter debates the "death of airdrops," I'm quietly positioning for the next wave. Projects like Hyperliquid prove that quality airdrops still reward early, genuine users with life-changing amounts.

I've been fortunate to catch major airdrops including Uniswap ($12k+), dYdX ($15k+), PENGU, 1INCH, Paraswap, and dozens of smaller wins. The difference? I focus on authentic usage patterns rather than mechanical farming.

In this section, I'm sharing my complete 2025 airdrop methodology—from identifying promising protocols early to building the exact onchain footprint that gets rewarded.

Building Onchain Credibility

The key to future airdrops isn't transaction volume—it's building legitimate onchain reputation. While others chase quick farming strategies, I'm focused on creating the behavioral patterns that protocols actually reward.

Smart airdrop hunters are already adapting their approach. Here are the specific methods I'm using to maximize credibility for the next wave of quality airdrops:

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In this edition of The Weekly Alpha:

• 📈 How I'm Getting Leveraged ETH Exposure Through TradFi

• 🧐 Onchain Analytics

• 📚 This Week's Intel

• 🎧 Podcast Picks

• 🔓 Vesting Watch

How I'm Getting Leveraged ETH Exposure Through TradFi

This week, I'm diving into an ETH treasury play that's been on my radar. It's early-stage, high-conviction territory—the kind of opportunity where being first matters more than being safe.

I'm positioning myself ahead of what I believe could be the next wave of institutional ETH accumulation. Below, I'll break down my thesis and why I'm allocating capital here despite the obvious risks.

Remember: I'm sharing my playbook, not dispensing financial advice. Do your own research, size your bets appropriately, and never invest more than you can afford to lose. This is alpha, not guaranteed returns.

The New MicroStrategy Playbook

If you're active on CT, you've probably heard about Bitmine, Sharplink Gaming, The Ether Machine, and other companies that have recently started using ETH as a treasury asset on their balance sheets.

For ETH as an asset, this is one of the most bullish cases. It could follow a similar playbook to what Michael Saylor did with Bitcoin at MicroStrategy.

Right now, the three biggest companies holding ETH are Bitmine, Sharplink, and The Ether Machine, and this all happened incredibly fast. For example, Bitmine grew its ETH balance by 410.68% in just the last 30 days. Wild stuff.

It's reasonable to expect that more traditional companies will join this narrative in the future.

Why I'm Betting Big on ETH Strategic Reserve Companies

Why am I investing in companies that use ETH as a strategic reserve? Simple—I'm a degen who likes to take risks, but calculated risks. Here's why these plays are genius:

Traditional Market Exposure with Crypto Upside These companies give me exposure to TradFi while keeping my ETH bag intact—an asset I've been bullish on for almost a decade. It's like having your cake and eating it too.

Tax Optimization (The Boring Stuff That Actually Matters) The tax benefits are actually insane. In my jurisdiction, traditional company investments get way better tax treatment than direct crypto holdings. So I'm essentially gaming the system while staying exposed to ETH—big brain moves right there.

Leveraged ETH Play (Degen Mode Activated) This is basically a leveraged bet on ETH, and CT knows I'm long-term bullish AF. When EIP-1559 improvements really kick in and those fees start burning hard, the buy pressure is gonna be absolutely wild. Having leverage on ETH through these companies? Chef's kiss.

Staking Alpha When these companies start staking their ETH reserves, it could create serious value for shareholders through yield distribution or similar strategies. That's another layer of potential returns that direct ETH holders might miss out on.

Proven Leadership (Not Just Another Rug) These aren't random projects with anon devs. Tom Lee is Chairman of Bitmine, and Joseph Lubin (literally co-founder of Ethereum) chairs Sharplink Gaming. Both advise on ETH strategy, bringing real expertise and credibility to these plays.

The combination of TradFi access, tax optimization, leverage potential, staking alpha, and solid leadership makes these ETH strategic reserve companies a no-brainer for any serious degen portfolio.

🔥 Want to earn yield and front-run a potential airdrop?

Try infiniFi early with my referral link

Your click supports this newsletter and gets you direct access to the protocol before it breaks out.

Onchain Analytics 🧐

AAVE on Track for $100B TVL

Aave is currently sitting at an impressive $62.1B in Total Value Locked (TVL) and $25.8B in active loans. If this growth trend continues, I project it could reach $100B in TVL by Q4, especially if Ethereum gains momentum.

As I mentioned in my recent X post, no one is expecting an airdrop from Aave, this growth is driven by genuine DeFi utility and relatively low risk compared to many other protocols, thanks to its long track record and battle-tested infrastructure.

Abstract is showing slow but steady growth.

Despite a relatively modest TVL of $48.61m, it’s up 7.33% in the past 24 hours, a sign of healthy momentum. Stablecoin market cap sits at $9.86m, and daily app fees are a solid $28.9k, with $3.7k in app revenue. Trading activity is picking up too, with $8.92m in DEX volume and $52.3k in perps volume in the last day, plus $110.8k in net inflows.

What makes Abstract interesting to me isn’t just the numbers. The L2 is full of quirky, onchain games and applications, with an onboarding process that’s smooth and beginner-friendly. As a Pudgy Penguin, I’m expecting a decent Abstract airdrop, but that’s secondary. I’m here because the chain feels genuinely useful.

I usually avoid short-term trading in favor of long-term investments backed by deeper research. But Abstract’s fast, low-friction approach to meme coin trading is surprisingly fun. It’s a new paradigm, and I’m happy to have some capital deployed here to see how it evolves.

PENGU Near ATH with 168% Growth in 3 Months

Key Metrics

• 3M Performance: +168.3%

• Current Price: $0.03728

• Market Cap Rank: #55

• Status: Near all-time high

• Category: Meme coin within the Pudgy Penguins ecosystem

Recent Performance
After a sharp post-launch downtrend, PENGU has staged a strong recovery and is now approaching its previous all-time high. Trading volumes have been consistently high, cementing its position as one of the most active meme coins in the market.

Catalysts

• Potential Abstract airdrop, which may benefit PENGU holders

• Consistent development and shipping from the Pudgy Penguins team throughout the bear market

• Renewed interest in ecosystem tokens as sentiment improves

Outlook
With price momentum strong and key ecosystem developments underway, PENGU is positioned to potentially outperform if market conditions remain favorable. Long-term holders in the Pudgy Penguins ecosystem may see compounded benefits if both PENGU and Abstract deliver on growth expectations.

Ether's Bullish Performance

Ether is currently experiencing strong bullish momentum, with prices rising above $4,000 over the weekend. This surge is primarily driven by traditional finance (TradFi) demand for ETH treasury assets, though we're also seeing retail investors pivoting from Solana and other Layer 1 blockchains to Ethereum.

ETH Net Inflow

Over the past three months, ETH has demonstrated significantly positive net inflows compared to most Layer 1 chains. Ethereum recorded a net inflow of $8.5 billion, while Solana lagged considerably with a net outflow of $12 million.

Strategic ETH Reserves and ETF Supply Account for 4.89% of ETH Supply

The current strategic ETH reserve momentum that we discussed above is currently very strong to drive the price upward, is it a top signal? I don’t really know and I don’t think so to be honest and the reason is that we see real thesis and institution starting to take this asset seriously, not only as an investment but as a fuel for there activity and build RWA, we can take Robinhood for example, building on top of Ethereum with the Arbitrum stack.

This Week's Intel 📚

The signal from the noise, this week's developments that actually matter for your DeFi positioning.

I've filtered through the endless stream of headlines, hot takes, and crypto Twitter drama to bring you the stories moving the ecosystem forward. These aren't just news updates; they're intelligence briefings on where capital is flowing, which narratives are gaining traction, and what regulatory shifts could reshape your strategy.

Skip the timeline doom-scrolling. This is your weekly intel drop.

• Hyperliquid drives $487B July surge in decentralized crypto trading - read

• Top 5 cities where you can pay rent entirely in Bitcoin - read

• Tornado Cash Verdict Threatens to Hold Back DeFi Where it Matters Most - read

• Gemini Teases ‘Onchain’ Platform as CEXs Push for DeFi Adoption - read

• Ethereum stakers face 9-day wait as stETH loops fall into the red - read

• Base outage highlights growing pains of a chain with real users - read

• Ethereum’s Fusaka upgrade may face delay - read

• Ethereum TVL Hits All-Time High as ETH Rallies - read

• Behind the scenes of public companies that are rushing to create crypto treasuries - read

Vesting Watch 🔓

• STRK (5.98% of released Supply) - August 15

• ARB (2.04% of released supply) - August 16

• ZK (3.61% of released supply) - August 17

Podcast Picks 🎧

This week's audio alpha—handpicked conversations that shaped my thinking and could shift yours too.

I sift through hours of DeFi content so you don't have to. These are the episodes worth your commute, the insights that made me pause and rewind, and the perspectives that are moving markets before they hit mainstream media.

Queue these up and stay ahead of the narrative.

That’s it for this week.

If you found this edition valuable, please consider sharing it with your network — it helps grow our community and keeps the alpha flowing.

Follow me on X

Leave a comment

None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose

Thanks for reading Yannis' DeFi Digest! Subscribe for free to receive new posts and support my work.

Subscribe