Ace ∑: MODE

genius: @orchidcredit

[Ace ∑: MODE @acedbaptist]

commercial banks underwrite unsecured corporate credit, transform short-term deposits into long-duration loans and price idiosyncratic borrower risk.

on chain lending today largely avoids that.

as silvio outlines, most Aave borrowing is basis trades, looping and leverage. for the moment aave is effectively monetizing volatility and yield differentials rather than distributing productive credit.

that makes revenue a function of crypto activity, not economic output.

generally decoupling won’t happen just because RWAs are listed.

it happens when protocols introduce new risk primitives:

– structured underwriting
– isolated credit environments
– explicit pricing of borrower risk
– capital efficiency beyond looping
– differentiated funding lanes

until then, current lending protocols are liquidity routers inside crypto.

once underwriting and capital structure evolve, they become @orchidcredit markets.

[Silvio @SilvioBusonero]

https://t.co/A4ZjRlBjdO

[Ace ∑: MODE @acedbaptist]

@hotpot_dao run it

[Ace ∑: MODE @acedbaptist]

@kantianum if an app doesnt gain traction is it because of mega or because of the team behind it?

[Ace ∑: MODE @acedbaptist]

@Defi_Warhol @coinbase @KASTxyz @RedotPay @Revolut @Cypher_HQ_ @ether_fi @holyheld @wirexapp @BitgetWallet @Bitpanda @BleapApp @Exa_App what does 8/5/10 mean?

[Ace ∑: MODE @acedbaptist]

@sayinshallah @bread_ we love big bread

[Shuyao Kong @hotpot_dao]

After spending the last two years building the MegaMafia, we’ve decided to sunset the program.

While it was a success in many ways, we believe that the program was built on assumptions that no longer hold.

Here are some reflections, and what’s coming up next.

> We had real conviction in Mafia founders, and have gone above and beyond in standing by their side to bring their products to market. Some examples include: restructuring the GTE leadership team during critical moments just one month after their initial pre-seed raise, offering to buy out Noise's investors when they tried to push out the CEO, and played a crucial role as they pivoted from their initial prediction market idea, and merging the Tenten and HitOne team after seeing the synergy between the two.

> Across both cohorts which in total included 20 teams, we lent our reputation and networks to founders so they could go on to raise over $80m in funding in pre-seeds, seeds, and series As. We kept the MegaETH’s raise to a minimum so investors can get more skin in the game with the Apps directly, rather than the protocol.

> For teams that had difficulty in raising when the market turned bearish, we extended resources, engineering bandwidth, and actual capital (e.g. six figures in audit for Avon) so they could make it to Mainnet. We did it solely to help founders see their vision through.

> We set the product vision for 5 teams and supported their initial builds before eventually facilitating their fundraises from leading tier-1 and tier-2 funds.

> We spent significant cash (in the millions) bootstrapping teams’ DeFi requirements, through market-making support, direct lending, and other liquidity related needs.

> We hosted 5 large-scale in-person events (New York, Brussels, Bangkok, Singapore, and Seoul) so MegaMafia projects could meet investors and community members from around the world.

In many ways, the MegaMafia was the best incubator of this cycle. But very little of that value has trickled to Mega. In fact, most of those applications are no longer being built with us. At the time, we intentionally took no equity, governance rights, nor economic value because we wanted people to be genuinely bought into the Mega vision and the power of our technology. While we will continue to support existing MegaMafia projects, there will no longer be MegaMafia 3.0.

What’s next?

Our ecosystem goal going forward is to support teams building OMEGA applications, apps that are only possible on MegaETH, using our wallet infrastructure and stablecoin.

More importantly, we're redirecting the energy we were lending to third-party builders into our own first-party applications: consumer-grade apps, built directly by us, for the people we're trying to serve. Where MegaMafia was indirect, betting on other teams to build value we'd eventually capture, first-party apps let us build direct relationships with end users ourselves, with all the upside and accountability that comes with owning the outcome.

We're aiming for faster feedback loops, with insane focus on accruing value directly to the protocol.

[DeFi Warhol @Defi_Warhol]

A ton of new neobank players surfaced lately.

While we're all comparing the @RedotPay / @gnosispay / @ether_fi cards, many new cards have emerged in the market.

Each one is leaning into a different edge:

→ @SolidYield: up to 8% APY + 3% cashback

→ @PulsarMoneyApp: agentic payments + 5.2% stablecoin APY

→ @xbnkapp: 5% cashback + 10% yield

→ @altitude: 3.25% APY backed by US treasuries

→ @Krak: 0% FX + 1% on fiat-to-crypto

→ @DogPay_: full compliance + business accounts

→ @tryavvio: up to 7% APY + transfers across 160+ countries (waitlist)

→ @orchidcredit: neobank on MegaETH (waitlist)

→ @joinCero: a credit-score card, higher score = more benefits (waitlist)

→ @AnodosFinance: financial AI agent + institutional-grade investing (waitlist)

Tbh, I'm starting to run out of reasons to use a classic bank card.

[Kirill Bulychev @kbulychev_]

New neobanks you should know about (not in any specific order):

@xbnkapp @PulsarMoneyApp @AnodosFinance @brookwellapp @tryavvio @DogPay_ @orchidcredit

[Aaron Guan @aaronguan]

MegaETH is a business

[Ace ∑: MODE @acedbaptist]

@ranveerar89 Wild

[Ace ∑: MODE @acedbaptist]

@0x_trophy https://t.co/y55accVfxN

[Ace ∑: MODE @acedbaptist]

@shiro57102 what a feeling

[nics @nics_off]

haven’t really talked about recent megaeth events & $mega price action yet.

no filter thoughts:

i’m not surprised at all by the current state of things. berachain taught me a year ago that building an ecosystem from scratch is probably one of the hardest challenges in crypto.

that being said, making conclusions right now makes zero sense to me. you probably start seeing the real picture 12 to 24 months after mainnet, not a few weeks in. calling it dead today is just pointless.

about the token, not surprised either. recent chain tges paved the way for this kind of price action, and when a team doesn’t “crime” the token, this is usually what happens. funny enough, people now almost expect teams to manipulate price lol.

the reality is that most people don’t see value in chain tokens anymore. megaeth at least has an interesting system with usdm buybacks, but these things take months or years before creating meaningful organic buy pressure.

we’re in an era where you can be bullish on a team, a chain and its apps, while still not wanting to hold the token because the risk/reward just doesn’t feel attractive enough.

eventually mega will find its bottom, probably once people stop farming engagement and doom posting about it because they’ve got nothing better to talk about. then probably comes the depressive phase. most chains die there. the few that survive usually become the best trades of your life.

stop reading x all day. ask yourself the real questions. stop blaming the team and just be honest with urself. you wouldn’t have done any better so stfu. and if you made money thanks to megaeth, at least be grateful for that. everyone who never took profit at tge either already has too much money, or was looking for a life changing trade in the wrong place.

i love megaeth.

[PaperImperium @ImperiumPaper]

A major unforced error in crypto is treating technical dashboards as financial dashboards. Nowhere is this as obvious as with TVL of lending protocols. TVL is NOT a substitute for accounting!

Let’s look at TVL defined as “Value of all coins held in smart contracts of the protocol”, and how it would treat a bank with the following balance sheet:

Deposits (a liability): $100m
Loans (an asset): $80m
Reserves (an asset): $20m
Equity: $10m

The TVL of this simplified balance sheet would show up as:
$100m deposits - $80m loans + $10m equity = $30m TVL

Does that feel accurate to you? It should not, because it structurally undercounts economic activity.

In fact, TVL - a technical metric - is treating the bank’s largest asset (its loan book) as a liability and largest liability (its deposits) as an asset!

The problem is one of using the wrong tool for the job. TVL counts how many tokens are in a smart contract or group of affiliated smart contracts. That’s it. In its most simple form, TVL is mostly just counting the reserve ratio of the bank (or lending protocol).

TVL is not a substitute for actual accounting, and people need to understand this.

A deposit on Aave/Morpho/SparkLend/Compound/Euler/Curvance is a liability to that protocol or pool. You could put $1 trillion in deposits onto one of those platforms and TVL would become $1 trillion. But that’s not an indication of economic activity!

Now imagine $999.999 billion of that got lent out. TVL has crashed from $1 trillion to $1 million. Looks bad on a chart, right? But now we’re seeing economic activity!

There is a reason why TVL is not used outside of crypto - it is a technical metric, not a financial one, and any overlap is coincidental and concentrated in very basic protocols like DEXes.

[Ace ∑: MODE @acedbaptist]

@hotpot_dao sounds familiar

[Ace ∑: MODE @acedbaptist]

@Octop3s orchid.

[Blackhaven @blackhaven]

Treasury & Fee Update

The bootstrap phase has come to an end, and we captured $632,168 USDm in the treasury.

To align with the community, we have decided to deposit the 10% protocol fee of $63,358.93 into the LP as a one-sided USDm deposit to temporarily support the liquidity.

[MegaETH @megaeth]

App Wave 4 is now live on Terminal

Seven new apps are ready to be explored.

Intros in the thread below:

[Aave @aave]

Aave crossed $1 billion deposits on @megaeth.

[Ace ∑: MODE @acedbaptist]

@megaeth mega operating system