Building on the original thesis that the growth of net new value, which I categorize as M0 in DeFi (encompassing real-world yield / assets), will drive the expansion of DeFi and, consequently, M2 (DeFi lending markets and credit facilities), it is evident that M0’s growth has progressed more slowly and in a more homogenous manner than expected. Instead, M1, or even M2 itself, may emerge as the primary driver of growth in the short to medium term. The lack of new yield sources has resulted in existing yields being wrapped, stretched, and tranched to create varied forms. From separating yield properties, such as principal versus yield, real yield versus rewards, durations, or junior versus senior tranches, likely in response to capital becoming sophisticated enough to demand more granular risk profiles or mainly to squeeze yield more effectively. At the same time, the demand side of the credit market is becoming more fragmented, with diverse requirements for terms and collateral types. The location of collateral will also increasingly shape the risk-to-return profile, all in all leading to a dynamic where the demand side influences the supply side, leading to greater specialization on both sides of the market. The horizontal expansion thesis holds, but the sequence and timeline differ from initial expectations. There's so much more to unpack here. Got more thoughts brewing on this. Thinking of going deeper soon. Share if you want to see where this goes.

Stack Your Yields. Borrow against @Trevee_xyz wstkscUSD from @aave on @SonicLabs.

ETHCC🇫🇷 Builders in town, drinks are ours, see you there.

Stack Your Yields. Re-lend aUSDC, USDC or both to earn 12.59% APY and 12x Sonic points on your deposit.

#Soonic2 46Club

0/ 246 Club is now LIVE on @SonicLabs. Re-Lending and Cross-Protocol Loan, only on 246 Club. Welcome to the Club

Cross-Protocol Loans, powered by Rings Protocol, open new doors. Borrow against wstkscUSD from Aave. Only on 246 Club, unleashing soon on @SonicLabs. Welcome to the Club, @Rings_Protocol.

We are pleased to welcome you to the next phase of the Exclusive Mainnet. Register here 👇🏻 -> Lock My Spot The registration form will close: 1. Once membership exceeds 200 participants, or 2. At the end of this week. Invitations will be sent via Twitter DM as soon as the form closes. Follow us before registering so you don’t miss. Registrations invited by existing members will be prioritized. See you soon.

We are pleased to welcome you to the next phase of the Exclusive Mainnet. Register here 👇🏻 -> Lock My Spot The registration form will close: 1. Once membership exceeds 200 participants, or 2. At the end of this week. Invitations will be sent via Twitter DM as soon as the form closes. Follow us before registering so you don’t miss. Registrations invited by existing members will be prioritized. See you soon.

Lending Restaking -> Re-Lending Lending Restaking drew inspiration from Restaking’s core principles. But the term caused confusion—many tied it to ETH Restaking or Shared Economic Security. To clarify, we’re moving on from Lending Restaking. It’s now Re-Lending.