🎉 Solayer has just secured $12.00M in its latest funding round! 🎉
🔹About: Solayer is an advanced restaking protocol built natively on the Solana blockchain. It aims to enhance the security and efficiency of decentralized applications (dApps) by leveraging Solana’s economic security and premium execution capabilities. Solayer introduces a shared validator network that allows various protocols to tap into a common economic security infrastructure, thereby improving network bandwidth and transaction throughput. This restaking network empowers dApps with a greater likelihood of securing block space and prioritizing transaction inclusion. Solayer recently raised $12 million in a seed funding round led by Polychain Capital, highlighting strong investor confidence. The platform’s mainnet launch has already seen significant traction, with invite-only deposits hitting a $20 million cap in just 45 minutes. By focusing on endogenous AVS (Application Validator Sets), Solayer aims to provide a robust and scalable solution for the Solana ecosystem. This innovative approach not only enhances the base layer security but also supports the growth and sustainability of on-chain applications. With backing from major investors like Binance Labs, Solayer is poised to make a significant impact in the blockchain space. 🚀🌐
🔹 Lead Investors: Polychain Capital, Hack VC, Binance Labs, big Brain Holdings, Sandeep Nailwal and many more.
🔹 Total Raised: $12.00M.
🔹 Project Category: DeFi, LSDfi, Restaking on Solana.
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#DEFİ #LSD #solana #Binance #BTC $SOL
$PYTH
$WIF

Infrastructure platform built on the Injective Network Hydro Protocol (HDRO) successfully concluded an investment round led by Injective, Vessel Capital, Moonhill Capital, SkyVision Capital, Exnetwork Capital, and contributors such as Quantstamp, Black Dragon, Trinito, Verse2, Paka, Coinseeker, DoraHacks, among others.

The company plans to use the newly raised funds to support the ongoing development of the project.

Hydro Protocol functions as the primary infrastructure platform for yield and liquidity strategies on the Layer 1 blockchain for decentralized finance (DeFi) applications Injective Network, integrating Liquid Staking Derivatives (LSD) and Real World Assets (RWA) to present a dedicated LSDFi product suite. Being among the first LSD/LSDFi (LSD Finance) protocols on Injective Network, Hydro Protocol seeks to introduce enhanced optimization and utility throughout the ecosystem.

Hydro Protocol is thrilled to announce the successful closure of our investment round, with esteemed industry leaders backing our vision!Hydro Protocol is backed by:@Injective_  @VesselVC@moonhillcap @SkyVisionCap  @exnetworkcap #Taureon @Quantstamp @BlackDragon_io… pic.twitter.com/eTCKLVDkVO

— Hydro Protocol (@hydro_fi) February 12, 2024

Hydro Protocol serves as a foundational force behind an LSD-centered ecosystem LSDFi, anchored by a core LSD asset–Hydro Protocol’s hINJ. While LSDFi can manifest in various structures, Hydro Protocol’s approach involves providing Real Yield Assets on the Injective Network.

Highlighting the user-friendly application of liquid staking, Hydro Protocol presents three distinct products, including Staked Assets, Farming, and Auto Compounding.

The main product of Hydro Protocol, LSD, provides liquid staking functionality, marking the inception and culmination of all aspects related to Hydro Protocol and Injective Network. 

Another essential product is yield optimization “The Farm” for liquid assets. It allows users to put their hINJ to work by staking their minted hINJ, gaining additional yields on their staked tokens. The farming yield operates as a form of airdrop, providing users with added yield after staking. During a pre-determined period, users have the opportunity to engage in “farming” for additional yield. Similar to a traditional farm, this yield is available for a temporary season and has a set expiration. Following the tokenomics of Hydro Protocol, a section of HDRO tokens is utilized to enhance rewards. 

Auto Compounding offers users the convenience of a “set it and forget it” approach, allowing them to optimize staking yields and enhancing rewards with INJ assets, eliminating the need for users to manually claim and re-stake their INJ rewards, saving both time and transaction fees.

Furthermore, Hydro Protocol has its token HDRO that serves as the governance and utility token. Capped at a maximum supply of 1 billion tokens, HDRO is structured to provide advantages to HDRO holders and stakers. The implementation of a value accrual mechanism enables the capture of real yield, with the proceeds proportionally utilized for HDRO buybacks. This captured value is then distributed to HDRO holders, offering benefits to stakers in the process.

Hydro Protocol Launches Mainnet and Outlines Future Plans  

Launched in 2023, Hydro Protocol recently marked a significant milestone by launching its mainnet at the end of January.Looking ahead to 2024, the project has an ambitious roadmap. Hydro Protocol aims to develop the LSDFi ecosystem on Injective Network further and bring RYAs into existence. The project also plans to establish partnerships with other projects both within and outside the Injective Network, creating additional utility for HDRO holders.

The recent Hydro Protocol’s successful investment round, coupled with its innovative approach and recent mainnet launch, positions it as a promising player in the decentralized finance landscape, offering a unique blend of liquid staking derivatives and real-world assets on the Injective Network.

The post LSDFi Infra Hydro Protocol Closes Strategic Funding Round to Boost Optimization and Utility Throughout Ecosystem appeared first on Metaverse Post.

Gas usage on the Ethereum network provides valuable insights into user demand and the major narratives that have shaped the ecosystem. By analyzing the trends, we can identify four significant storylines that have influenced Ethereum's journey, often resulting in new all-time highs for ETH prices during their peaks.

Let's explore these narratives:

🟢 Initial Coin Offerings (ICOs):  ICOs, the crypto equivalent of IPOs, reached their zenith in 2017 and 2018. During this period, up to 40% of gas usage was attributed to ERC-20 token transfers. Although demand for ERC-20 token transfers has declined, it remains notable today due to the popularity of Memecoins and new token distribution methods like Yield Farming and Airdrops.

🟡 Decentralized Finance (DeFi):  The rise of DeFi in 2020 promised to create on-chain financial primitives and instruments without traditional intermediaries. It experienced its peak usage from June 2020 to 2021, accounting for approximately 30% of gas usage. The DeFi wave continues today, albeit at a lower intensity.

🟠 Non-Fungible Tokens (NFTs):  NFTs introduced unique representations of digital or real-world assets. While they have existed for years, it was in mid-2021 that they gained mainstream awareness. NFT demand fluctuated in 2022 but has recently seen a resurgence due to various factors (refer to our report in WoC 09).

🔵 Stablecoins:  Stablecoins, particularly those pegged to the US dollar, have witnessed a surge in user demand since mid-2020. The decrease in gas usage from stablecoin transactions reflects a shift in utility rather than a decline in demand. Stablecoins are now predominantly used for hedging and as a store of value rather than for direct payments.

📝Overview

An interesting pattern emerges, where each new application experiences a boom-bust cycle, driving its gas consumption to around 30% to 40% of the total. Subsequently, there is a gradual decline to a baseline level of approximately 8% of gas consumption for these major application types.

🎯 Conlusion

Understanding these cycles and narratives helps us gain insights into the evolution of Ethereum and its various use cases. As the network continues to evolve, new narratives are likely to emerge, shaping the future of decentralized applications on Ethereum.

#ETH #narrative #LSD #staking #crypto2023

Due to the complexity of the protocol, I will be breaking this down into two threads. In part 1 we will go through:

How Pendle works

Understanding PT/YT

vePENDLE

Ecosystem+adoption

I. How pendle works?

Pendle is a yield protocol that splits up a yield-bearing token into two components

with a fixed maturity date:

PT: Represents the principal of the underlying token

YT: Represents the yield accrued for the underlying asset

At maturity, PT is redeemable for the underlying asset, and YT is redeemable for the

yield earned by the underlying asset through the duration.

What qualifies as a yield-bearing token?

Proof-of-stake tokens, e.g. $stETH

LP Tokens, e.g. $GLP, $gDAI

Protocol tokens with staking emissions or fee sharing mechanism e.g., $APE ,

$LOOKS.

In TarFi terms, this is analogous to valuing a vanilla bond, which is comprised of

face value redeemable at maturity, and coupon payments throughout the duration

of the bond. The current value is the discounted value of the two components.

A bond’s principal and future coupon payments are discounted based on the time

and discount rate to get the current value of the bond:

PT: Face value

YT: Coupon payments

Take stETH as an example, providing 1 ETH into Pendle, you can get: 1 PT stETH,

redeemable for 1 ETH at expiry (29 Jun) 1 YT stETH, redeemable for the yield

earned for 1 stETH from now - 29 Jun

PT/YT is traded through an embedded AMM, which allows for price discovery

between the two based on future expectations of the underlying token's yield.

II. Understanding PT/YT

Taking the same stETH example, at current prices:

PT stETH = 1735.31

YT stETH = 21.63

Days to maturity = 93 Days

Buying PT stETH is the equivalent to buying ETH at a discount, where in 93 days you

would be able to redeem it for 1 stETH.

Buying at current prices would net you:

(1+ 21.63/1735.31)^(365/93) = 4.95% APY.

Regardless of how much stETH earns in yield over the next 93 days, you lock up

4.95% up front.

Alternatively, buying YT is a leveraged bet on the future yield (until maturity) of

stETH.

Recall that at maturity, 1 YT is entitled to accumulated yield of 1 stETH throughout

the duration.

Should the yield of stETH increase above 4.95%, profits will be magnified.

III. vePENDLE

PENDLE is the native token of the protocol, it can be locked and staked for

vePENDLE, the vote locked token entitled to:

Governance rights

Protocol fees

Boosted rewards

PENDLE can be locked for anywhere from 1 week to 2 years, and decays overtime

until the end of the lock

A key difference between Pendle and other ve-models is that voting for a pool

allows you to earn 80% of swap fees earned from that pool in exchange for directing

emissions to the pool.

Additionally, vePENDLE holders also earns a 3% fee from all yield accrued by YT.

Lastly, if you are a LP in a pool while holding vePENDLE, your emissions and

rewards will be boosted by up to 250% based on your vePENDLE balance.

IV. Ecosystem+adoption

If you've been active at all on CT, you'd see the Pendle is the talk of the town.

However, Pendle isn't your hottest AI shitcoin.

In fact, the team has been building since 2021

Its TVL visibly died down in 2022, but has seen a resurgence over the past 4 months

- I would attribute this to:

LSD Narrative

Arbitrum deployment

#LSD - the original idea behind the project was create yield derivative markets for

PoS tokens, and Pendle has already integrated with @LidoFinance, @ankr, and

@Rocket_Pool

A renewed interest in ETH staking = good for Pendle

#Arbitrum

The biggest catalyst for any non-Arb project is deploying on Arbitrum. With

Realyield running rampant, degens are rushing over to trade the likes of $GLP and

$gDA

I still believe we're quite early to on-chain credit markets. For the most part I think

pendle is still mostly used by speculators (if there's data that says otherwise lmk),

but yield hedging will be an extremely important use case for sophisticated

investors.