lolol NBC just wrote a headline about Fartcoin. If you don't know, Fartcoin is a Solana based memecoin that has gone up by 330% in the past 2 weeks (currently at $785m). I remember that mainstream media loved writing about Dogecoin in the previous cycles. Dogecoin became the punching bag for how "stupid" crypto is. Yet, they couldn't stop writing about it because ragebait = clicks. And that attention skyrocketed Dogecoin's price. My theory is fartcoin could replace Dogecoin as the punching bag for the media, and keep capturing more and more attention. Here's what we got today:
MegaETH fundraising. The new standard for new projects this cycle.
New Token Radar Report. Our thesis on Instadapp.
Around the web. PancakeSwapX is here, Odos DAO announced their loyalty program, and more.
Today's email is brought to you by KelpDAO — the restaking protocol
Last week, a crypto project changed the rules of fundraising - It raised millions in seconds without any VCs.
What happened? MegaETH recently raised $10 million from retail investors through Echo, and the details are absolutely wild:
The terms were identical to those given to VCs like Dragonfly and angels like Vitalik.
They initially planned to raise just $4.2 million—which sold out in a jaw-dropping 56 seconds.
To meet demand, they opened a second round for $5.8 million, fully funded in just 70 seconds.
A total of 3,200 investors from 94 countries participated, with an average investment of $3,140.
What is MegaETH? It is an ETH L2 laser-focused on performance. The team promises a real-time, ultra-cheap blockchain that'll be the best in the industry. Think blockchain on steroids, but legal.
Their edge lies in their controversial yet innovative technical architecture, made possible by being an ETH L2 rather than an L1. If you're a tech nerd, you can dive deeper into their design here.
Why Should You Care? MegaETH is building a new ecosystem that could enable groundbreaking applications previously impossible on blockchains.
For example: GTE, the fastest decentralised trading protocol, will run on MegaETH. Protocols like these may heavily reward their early adopters.
Finding MegaETH now is much like finding DeFi before Summer 2020 or discovering AI Agents before they exploded.
To stay ahead, join their Discord for community updates and potential opportunities.
The raise didn't just fund a promising project—it solidified a new meta for this cycle
What's the new meta? We're seeing the return of 2017-style ICOs (with some variation).
Instead of raising millions exclusively from VCs, projects are running public rounds where anyone can invest on equal terms.
I've traced the development of this meta in our newsletter. Back in May, I shared how new VC tokens are uninvestable for retail, thanks to their sky-high fully diluted valuations (FDVs).
Memecoin Mania on Pump.Fun was partly a response to it. It allowed everyone, including VC and degens, to invest at the same terms.
The current meta of AI Agents on Virtuals is another example. All hot projects of the narrative started trading at very low valuations.
Recently, HyperLiquid, a perp-dex-focused L1, proved that serious projects can grow without VC funding as well. Instead, they built a passionate community by airdropping them a ton of tokens.
MegaETH is continuing this trend by giving retail access to the same terms as VCs.
How to access deals like MegaETH? There are multiple platforms that allows you to angel invest in crypto companies. One caveat: you do need to do KYC on these platforms.
Where does the yield come from? They deploy funds across top DeFi protocols with strategies like leverage looping and points farming, all managed with top-tier risk controls.
Last week, I shared a new feature called Token Radar - it's an 80/20 breakdown of interesting tokens. Last week I shared GAME by Virtuals which has since doubled in price. (did any of you pick some up?)
This is just a sneak peek of what's coming with The DeFi Edge Pro. Here's another free token report to show you what's in store. Enjoy!
Market cap: $357m TVL: $3.85B Holders: 5,822 Sector: Defi - Lending + Dex Where to Buy:Uniswap on Polygon / Ethereum
Imagine a platform where your loans don't just cost you money, they earn for you. That's what Instadapp's Fluid is bringing to DeFi.
What Is It? Instadapp has been building since 2018, and is no stranger to DeFi innovation.
During the DeFi summer, they managed over $15B in TVL, cementing itself as a key infrastructure player and was one of the earliest middleware solutions in DeFi.
But what does that mean? Think of middleware as a bridge.
It connects users to different DeFi protocols like Aave, Compound, and Maker, making it easier to access these services from one platform.
Instead of going to each protocol separately, you could manage everything, lending, borrowing, and earning yield. All through Instadapp.
Now, Instadapp is evolving into Fluid, an ecosystem that combines money markets and a DEX to make liquidity and debt work harder. It's the centerpiece of a four-product suite that includes:
Instadapp Pro: Advanced tools for DeFi power users.
Instadapp Lite: A simplified, user-friendly gateway to DeFi.
Avocado Wallet: A next-gen smart wallet for seamless cross-chain interactions.
Fluid Protocol: Combining money markets and a DEX for unprecedented liquidity efficiency.
Fluid's goal? Make DeFi easier and more efficient by introducing features like smart collateral and smart debt, which help users earn more and do more with their assets.
The Game-Changing Innovations:
Smart Collateral: Most lending protocols let you deposit collateral that just sits there. Fluid changes this. By depositing a pair like ETH<>wstETH, your collateral not only backs your loan but also earns trading fees as liquidity in the DEX.
Smart Debt: Debt has always been a cost! Until now. Fluid turns debt into an asset. Borrowed funds are used as trading liquidity, earning fees that reduce your borrowing costs. In some cases, high trading volumes could even mean you're effectively being paid to borrow.
Let's understand with an example:
In this example, Borrow costs drop to ~7.57% (originally 12.44%), thanks to trading APR offsetting ~5%.
This is Smart debt in action, your borrow positions earn trading fees, effectively reducing your borrowing APY.
Honestly, it's impressive.
The Bigger Picture for Fluid
The DeFi lending and borrowing space is set to explode to a $100B+ market opportunity in the next 2–3 years. Right now, giants like Aave and Compound dominate, but there's room for challengers with fresh ideas.
That's where Fluid comes in, right where lending meets DEX liquidity that is strong enough to challenge Uniswap, with a goal of reaching a $10B market size by 2025.
Why Does Fluid Stand Out? Fluid Dex has already established itself as the 3rd largest DEX on Ethereum, with $428M in 7-day trading volume and $1.24B TVL in just 1 month after launch.
Most DEXs let you trade assets. Fluid's DEX lets you trade smarter. With features like smart collateral, LPs can use their liquidity positions as collateral, earning trading fees while reducing risk.
For Lending & Borrowers, Fluid boasts superior efficiency compared to competitors like Aave, Compound, and MakerDAO. Let's compare:
For example, Fluid's wstETH <> ETH pair has a liquidation penalty as low as 0.1%, making it much cheaper and safer for users.
Why Is It Gaining Traction? Fluid has already processed $1B+ in trade volume and with plans to expand into derivatives, real-world assets, interest rate swaps, and FX markets.
15% Avg Yield on $USDC and 14% on $GHO on Ethereum Mainnet.
~18% Yield on $USDC on Base & Arbitrum as well.
With yields like this, it's no surprise stablecoins are flowing here.
The rebranding to $FLUID aligns with Instadapp's vision of creating a sustainable DeFi ecosystem with strong value accrual for token holders.
Buyback programs and governance enhancements are expected to drive speculative demand and organic growth.
Upcoming Catalysts
Rebranding $INST to $FLUID with a 1:1 migration (no dilution).
Launch of a buyback program when revenue hits $10M annually, using up to 100% of revenue.
Aave DAO's proposal to acquire 1% of the total $INST supply.
Expansion: Adding support for new markets like derivatives and real-world assets.
Growth incentives targeting $10B market size by 2025.
12% Allocation of $FLUID for CEX listings, market making, and fundraising.
Development of protocol-owned $FLUID liquidity on Fluid DEX.
About to be listed on ByBit spot. We could see more listings soon.
The Team? Instadapp is run by a team with over 5+ years of experience and backing from big names like Naval Ravikant, Balaji Srinivasan, Coinbase Ventures, and Pantera Capital.
They've built trust in the DeFi space and have the resources to keep delivering.
What Makes Fluid Different
Dedication to safety: Over the past 6 years, Instadapp has maintained an impeccable security record with zero hacks, and Fluid alone has undergone 6 audits to date.
Revenue Sharing Opportunities: Fluid combines lending and trading fees, offering users multiple streams of revenue and driving higher TVL. Future plans include algorithmic buybacks to reward token holders as the protocol grows.
Roadmap packed w/ Milestones: Fluid is expanding into derivatives, real-world assets, and FX markets. With Incentives for lending and DEX activities using up to 0.5% of the total supply monthly. New tokenomics, like revenue-sharing, aim to attract more users and build value.
Strategic Collaborations: The Aave DAO would buy "$4M worth of $INST tokens using GHO (approximately 1% of total $INST supply at 350M FDV)"
Aave DAO will allocate up to 1/3 of INST tokens to back GHO pairs on Fluid via Merit.
Thesis: Why I'm Excited About Fluid
Let's face it. DeFi hasn't seen a lot of exciting changes in the past few years. Most protocols just make small improvements, but nothing truly groundbreaking. Fluid changes that.
This is the first protocol to seriously challenge Uniswap. In just one month, Fluid has become the third-largest DEX on Ethereum, handling $428M in weekly volume.
Here's the kicker. They've done that with only three pools. Imagine what happens when they scale.
It's not just regular users who are noticing. Big players in DeFi are lining up to work with Fluid:
Aave DAO has proposed buying $4M worth of $INST tokens.
Wintermute has proposed a 700k INST/FLUID loan for 1 year, with a $10 strike price repayment option, to provide liquidity across major DeFi and CEX platforms.
That tells me one thing, people who understand this space are betting big on Fluid.
What makes Fluid different is real innovation. It's not just another DEX or lending protocol. With smart collateral, your assets don't sit idle, they earn trading fees. And with smart debt, your loans can generate income, lowering your borrowing costs.
Why does this matter? Fluid is making DeFi more efficient and more profitable for users.
Disclaimer: 1. I own Instadapp tokens 2. FLUID has sponsored this newsletter before. This report is not sponsored - I love the token and I'm bullish on it. This analysis is for educational purposes and reflects personal opinions. Always conduct your own research before investing.
🚀 DeFi Catalysts
PankcakeSwap announced PancakeSwapX on Ethereum & Arbitrum. There'll be zero trading fees or gas fees.
Movement, an Ethereum L2, is integrating Kado Money. Users can use Google Pay, debit and credit cards, bank transfers, and onboard to Movement.
Frax Finance released part 2 of its 3-part vision announcement. It included major points like the optimization of the Fraxtal chain for AI Agents.
Mateora has opened M3M3 to everyone. Using it, creators can configure a stake-to-earn mechanism for their project with their preferred settings.
Sparks has released its "Savings" feature on Base. Users can now earn 12.5% by depositing on Sparks.
Sturdy Finance's Bittensor subnet has integrated Ondo Finance. Using Sturdy, you can earn AI-optimized yield on Ondo assets.
EigenLayer introduced the User Testing Program. They're looking for volunteers to provide feedback on upcoming features and products.
🪂 Airdrop Alpha
Odos DAO has announced a loyalty program that will start on December 20th. It is designed to reward user engagement.
Taiko started season three of their reward program. Locking up TAIKO tokens will get users boosed XP up to 90x.
DISCLAIMER: I'm NOT a financial advisor. This content is for education and information purposes only. Crypto and DeFi are risky and speculative. Please do your research before investing. Whenever you're ready, there are 3 ways we can help you:
⚙️ The DeFi Edge PRO- Designed for busy people who want to stay ahead of the curve. Leverage our research to save you hours each week, and to see what we're personally investing in. Join the waitlist.
🚀 The DeFi Edge Ventures- We identify, invest, and help amplify DeFi Protocols that positively impact the Crypto space.
🧠 DeFi 2nd Brain - Feeling overwhelmed with information? Organize your research with a 2nd brain system.
You're receiving this email because you signed up for my newsletter. You can update your Preferences or Unsubscribe here. 113 Cherry St #92768, Seattle, WA 98104-2205
No comments:
Post a Comment