The most interesting thing about the fallout from the rsETH exploit is where the capital fleeing Aave didn't go. During the event, Aave lost nearly $10B in TVL. Those funds, for the most part, did not move to another lending protocol. Morpho ended the window flat. So did Fluid. Compound fell 13% and Euler lost about 40% of its supply. The only one that gained was SparkLend. SparkLend gained $1.27B over the window. The largest single depositor was Spark's own automated treasury contract which net-contributed $437M, roughly a third of SparkLend's total gain. Outside the treasury, the depositor base was top-heavy and focused within a handful of large wallets In a bank run, people don't go to the bank, withdraw their funds, and then go deposit to the bank next door. The financial system is interconnected. If one bank is in trouble, they all could be. So, Aave didn't break. They managed to plug the hole and cascading failures were averted. But.. the capital didn't come back. The entire sector remained contracted beyond the event I think this is because Aave functioned as the trust ceiling for the category - the safest option onchain capital had. When the safest venue is in trouble, there is nowhere safer to run. And if Aave isn’t safe, the logical conclusion is that nowhere is. In the same month, total stablecoin supply hit a record $320 billion. The capital is here. It just isn't lending. Aave's USDC supply rate sits at 3.50%. SPAXX, Fidelity's government money market fund, is paying 3.29%. The premium for DeFi lending's opaque risks is twenty-one basis points right now Most depositors were likely unaware they had indirect exposure to rsETH until this event. The question now is what else they are unknowingly underwriting

On Lotus, lenders earn yield even when no one is borrowing. We’ve integrated @WisdomTreePrime’s tokenized money market fund into the reserve framework for LotusUSD. A new model for DeFi lending: productive debt.

On Lotus, lenders earn yield even when no one is borrowing. We’ve integrated @WisdomTreePrime’s tokenized money market fund into the reserve framework for LotusUSD. A new model for DeFi lending: productive debt.

More vaults do not automatically mean better choices. Better vaults start with better building blocks. We spoke with @vaultsfyi, @superformxyz, @yield, and @gizatechxyz about what integrators actually need from the next credit engine powering vaults.

Lovable is missing the real growth or “generation influence” outside of the ARR posts they keep sharing and that’s their users. People actually using Lovable and building companies with it. I mean I don’t even hear about them, not even from Lovable. Where are the founders who built their first product with Lovable. Where is the person who quit their job after launching something with it. Where is the team that shipped a startup in two weeks because of Lovable. Those are the stories people want to see. Lovable is a VC backed company and it seems like they are making good money but the real opportunity is much bigger than posting ARR screenshots. They could literally create their own version of YC just from people building with their product. Imagine a cohort of founders launching companies with Lovable. Imagine showing the best products built with it every month. Imagine the stories of people building their first startup using Lovable. Put those people on billboards. Put them in ads. Put them all over social media. Tell real stories about what people are building. I love MRR and ARR posts. But honestly they hit very different when they come from bootstrapped companies. When a bootstrapped company posts 30k or 100k MRR you know exactly what that means. Someone sat alone building something. Someone shipped a product. Someone convinced real customers to pay. That revenue is survival. When a VC backed company posts ARR growth it just doesn’t feel the same. You raised money to grow. You have a team, marketing budget, distribution of course the numbers will move. The more interesting story is not the revenue chart. The real story is the companies being built with your product. That’s the real influence.