Sharing onchain data and insights | prev. @LiquityProtocol @dinero_xyz
Austin, TX
Joined February 2021
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~91% of the $300B stablecoin market is fiat-backed, and nearly all the rest still relies on RWAs or centralized assets.
@polarisfnd might be the best attempt yet at changing that with a scalable, peg-resilient stablecoin backed only by ETH.
Here’s how:
The first curated markets on @aave by @SentoraHQ grew from $1M to $100M in ten days.
Most of DeFi’s top vaults took over a month to hit their first $100M.
The Aave effect is real.
In under three weeks, @SentoraHQ has become the first curator on Aave to cross $100 million deposits.
.@pendle_fi is now the largest DeFi venue for tokenized stocks, with 18.5% market share.
Data: @tokenterminal
Derrick retweeted
Here’s an idea:
What if projects funded monthly event contracts on whether they’ll be exploited, held onto the NO side, and sold the YES side to collect premiums?
They could compound those premiums into a rainy day fund, offer users native exploit coverage, and get market-derived odds of risks, all at once.
Euro stablecoins are past their 2022 high and closing in on $1B market cap.
@circle's EURC accounts for 61% of it.
Data: @tokenterminal
The @ether_fi Cash market on @aave V4 grew to $320M in deposits and $43M in active loans in under three months.
This is what mainstream adoption of DeFi looks like.
Data: @TokenLogic
Thanks for the MCP credits 🫡 @JasonYanowitz nitter.cf/Blockworks/status/2117…
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Wow, @Morpho presents itself as a champion of open, permissionless markets, yet its policy work asks the SEC for more oversight of DeFi.
The framework its coalition submitted would add registration costs, compliance overhead, and potentially an approval process before anyone can act as a curator or vault provider. Large institutions can absorb those costs, but the independent teams that drive basically all of Morpho’s growth would be priced out, which leaves curation to its institutional partners.
The framework’s ten conditions start from the argument that an isolated, immutable market isn’t a security, which is how Morpho’s markets work. Compliance falls on whoever retains control, which means the curators.
Today, 80 of the 104 active Morpho vaults over $5M, holding $4.96B, already miss a condition because fees can change with no timelock. That doesn’t even account for what else curators can control, like moving funds between markets. @SteakhouseFi and @SentoraHQ hold $3.23B of that $4.96B. @Bitwise and @galaxyhq, the other two coalition anchors, also curate on Morpho but hold only 2%. Interesting, to say the least.
Vaults could also become less safe. To meet these conditions, curators could only pull funds from a market under preset rules, not their own judgment. Yet after the Kelp DAO events in April, Morpho’s own CEO credited “curators taking preemptive measures immediately.” How much of that survives these rules?
If isolated, immutable markets get the clearest legal answer, institutions will go there first, which favors Morpho over most of DeFi. The report also says vaults open to anyone can lean toward being securities, with gating as one fix. That logic opens the door to treating receipt tokens like aTokens as securities, and could extend to wrapped assets, liquid staking tokens, and vault shares all across DeFi. The damage this could do is very difficult to measure right now.
Morpho wants to be the legal home for institutional capital, which is fine. But I hope they can explain why they aren't keeping the market open for every protocol and every team building onchain.
Is Morpho trying to kill DeFi?
@aave and @Morpho both sent the SEC a legal framework for DeFi lending, one defends DeFi, the other negotiates it away
When you deposit into a lending market or a vault, did you just buy a security? If yes, someone has to register, disclose and answer to the SEC. If no, DeFi keeps running as it is.
The SEC mainly uses two tests:
1- Howey: did you put money into a shared venture and expect profit from someone else's work?
2- Reves: is your position really an IOU, a note someone promised to repay?
Aave's approach (Aave Labs, @kamino , @veda_labs ) On Howey, there is no shared venture. Suppliers use the same pool and rate, but nobody's profit depends on anyone else. DAO votes with timelocks run a market. They don't manage your money
On Reves, the test never starts, as there is no lender, no borrower duty and no promise to repay, so no IOU exists. Vault curators may count as investment advisers, yet they can't touch your funds
That means no custody and no fund. What it wants from the SEC: confirm existing law. No exemption needed
Morpho's approach (CCI Vault Coalition: Morpho, Bitwise, Galaxy) Control is the yardstick. The less any person can change after you deposit, the further you sit from securities law. Ten conditions define the safe zone, including locked or timelocked parameters and no moving funds between markets after deposit
Howey gets fought mostly on "someone else's work." The paper concedes a vault may already count as a shared venture
Lending positions are treated as notes under Reves, and selling them to retail likely leans "security," it admits.
Its request: exemptive relief, a compliance entity wherever someone holds control, and a private fund lane for vetted investors.
So what's best for DeFi?
Morpho's map is detailed and candid about hard cases, which regulators appreciate. The cost is ground given up before the fight begins. Every concession becomes the SEC's starting point, and the safe zone rewards frozen code over protocols that keep evolving. Aave keeps the default where DeFi needs it. Open markets aren't securities, governance can keep improving the protocol, and no company has to stand in front of it.
Adopt Aave's reading and DeFi stays permissionless, but under Morpho's, DeFi runs on a license
curious to hear what @ImmutableLawyer @spynter @lex_node would think about this
Stablecoin cards hit a new record of 363K users in October.
@ether_fi leads the pack with 52K, 3x a year ago.
Data: @Paymentscan
The @aave mobile app passed $40M deposits.
October was its biggest month yet.
Data: @BlockworksData
Consumer apps just had their first month as crypto's #1 revenue sector.
In September, they earned 39% of all revenue, ahead of blockchains (31%) and finance apps (30%).
Data: @BlockworksData
Derrick retweeted
Trueo × DefiLlama
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Our prediction markets are live on @DefiLlama dashboards, bringing markets on risk, revenue, AUM, and other metrics directly to the users tracking the data.
Why is every AI startup doing this for their launch video lmfao
Meet Pancake, the Vercel for GTM.
Try it at pancake.ai
Your agent ships your product. Now it ships your go-to-market.
How? A GTM brain that knows your business, 50+ data providers to find the right customers and tools to reach them.
Your next customers are one prompt away.
(did I really have to jump off a plane to say that? questionable, but I survived and now you're reading my tweet)
Derrick retweeted
BREAKING: In GTA 6 you can try to impress Lucia by showing her your vibe coded app that never ships to production:
