Deep42 🪴

$SKY Q3'26 REPORT HIGHLIGHTS Net revenue: $37.19M, +11.8% QoQ, margin from 31.0% to 37.5% Gross revenue: $99.29M, -7.4% QoQ, down from $123.79M in Q1 Expenses $62.10M, -16.0% QoQ Where the margin came from: 1. Savings rate payouts $41.94M (-$11.97M) as sUSDS fell from $5.52B to $4.52B 2. $11.97M payout cut minus $8.06M revenue drop = the $3.91M profit gain 3. Since Q3: savings rate up to 3.80% (Oct 7), sUSDS back to $4.72B (Oct 21) Where the profit went: A.) $28.47M to reserves ($85.08M of a $150M goal) B.) $8.72M to the SKY side ($5.60M buybacks + $3.12M USDS to stakers), 23% of net revenue, Stage 2 live from Aug 17 Comments: "Q3 showed that they are already integrating at the balance-sheet level" - Rune Christensen, Sky co-founder Source: Sky Ecosystem Q3'26 Report, Sky Frontier Foundation (self-funded)

Zcash blocks get three times faster this week @Zcash is set to switch on its NU7 upgrade at block 3,543,405, expected around Thursday, November 5. The target time between blocks drops from 75 seconds to 25, cutting the wait for a first confirmation to a third, while the reward per block shrinks so daily $ZEC issuance stays the same. @ZcashFoundation has released Zebra 7.0.0, its first stable node software supporting NU7 on mainnet, with fixes for seven security issues. Node operators need to upgrade before the switch, since older 6.x versions can’t follow the chain past that block, and version 4 transactions will stop working entirely.

Kamino Fixed Rates just crossed $75M in active loans, ~six weeks after launch. The growth is concentrated in one clear use case: leveraged exposure to tokenized U.S. consumer auto loans. On Sept 21, @kamino launched fixed-rate borrowing on Solana w/ Figure and @HastraFi. The first product was a Fixed Rate Multiply vault on AUTO, Hastra's yield-bearing token backed by Figure's near-prime auto loans through Democratized Prime. Borrowers lock in 5.3% for 30 days (later markets sit at 5.75% and 6%) w/ auto-rollover if there's liquidity at maturity. A known rate for a defined period replaces a variable rate that reprices with utilization every few blocks. People clearly wanted it, and the uptake was fast: 🔸 $10M+ originated in the first 72 hours 🔸 $40M+ in two weeks 🔸 $62M+ by late October, now $75M 🔸 AUTO supplied on Kamino went from roughly $9M to nearly $100M, ~10x 🔸 The broader AUTO market crossed $170M in deposits, with fixed-rate debt making up most of the borrowing That makes it the fastest-growing fixed-rate lending protocol onchain. Multiply has been the main driver. Users deposit AUTO → borrow wYLDS at the fixed rate → buy more AUTO, all in one transaction. So leverage demand ends up creating new issuance of the underlying tokenized loans. To me the ramp above is the strongest proof the product works. Almost all onchain lending still runs on open-ended variable rates. That model is simple and capital-efficient for crypto-native looping, and fixed rates now serve the cases that need predictable financing costs, esp over weeks or months. Think about RWA issuers scaling distribution + funds running multi-month strategies + tradfi institutions modelling their cost of capital. Here's what Fixed Rates adds: 🔸 A rate grid, with different rates and durations as separate reserves 🔸 Conditional liquidity, so capital keeps earning in variable pools until it's matched to a fixed-rate borrow 🔸 Effectively the first live onchain yield curve And imo the signal here is real. Borrowers used the product aggressively once rate certainty was there and the underlying yield supported it and that's what institutions look for before they get involved. If the same pattern shows up in other tokenized credit markets or larger RWA pools, this is the kind of credit infra DeFi has been missing. Onchain credit may not end up exclusively fixed. It now has a working, growing option for the cases where fixed actually matters.

Intercontinental Exchange (ICE) and trade[XYZ] have announced their plan to use Hyperliquid as the infrastructure layer to deploy perpetual futures markets for US traders across crypto, equities, commodities, foreign exchange, and other real-world assets, subject to regulatory approvals. ICE operates NYSE and some of the largest exchanges and clearing houses globally. In this structure: + Hyperliquid serves as the underlying technology infrastructure via HIP-3* + trade[XYZ] designs and implements the markets + ICE operates the regulated market and clearing structure Existing trade[XYZ] HIP-3 markets will remain unchanged. Hyperliquid is a neutral infrastructure layer with the goal of supporting large parts of the financial system. As with HIP-3, HIP-3* deployers are independent operators who use Hyperliquid as the onchain infrastructure layer for their own markets, while retaining control and responsibility over their deployment.