Boccaccio

Danny Knettel

Luke Leasure

Marc Arjoon

Kunal Doshi

Carlos

Shaunda Devens

For savvy degens who want to think like researchers and analysts, from Blockworks Research

0xResearch

This week Kyle Samani joins the show to discuss the successful $1.65B raise for Forward Industries. We deep dive into how Forward Industries plan to converge between traditional markets &amp; DeFi, the ultimate vision for the Solana treasury company, the difference between SOL &amp; BTC DATs &amp; why stablecoins are crypto's iPhone moment. Enjoy!
 
Although our guest this week is an Investment Partner of a registered investment adviser, nothing in this podcast should be considered an offer of Multicoin’s investment advisory services or should otherwise be confused for investment, tax, legal or other financial advice.
--
Follow Kyle: https://x.com/KyleSamani
Follow Jason: https://x.com/JasonYanowitz
Follow Empire: https://twitter.com/theempirepod
--
Katana is a DeFi-first chain built for deep liquidity and real yield, by redirecting chain revenue back to active DeFi users. The 1 billion KAT campaign is live. Bridge and deposit directly into vaults in one simple click and start earning immediately on your ETH, BTC, USDC, and more. 
 
Go to app.katana.network to check it out. 
--
Is your treasury losing value to inflation? Learn how to make digital assets like ETH and SOL productive with uncorrelated, protocol-driven staking rewards. 
 
A new report from Liquid Collective and EigenCloud outlines a practical guide for CFOs to integrate institutional-grade staking and restaking. 
 
Read The Productive Treasury Report: https://liquidcollective.io/corporate-treasury-staking/ 
--
Allora is the new AI standard for DeFi platforms and agents to achieve sharper, faster, and more reliable financial systems than any single language model can offer. Instead of choosing and managing models, users state their goal, and the system delivers the best result. 
 
To learn more about Allora Network, visit https://www.allora.network/ and <a href="https://x.com/AlloraNetwork">https://x.com/AlloraNetwork</a>.
--
Crypto’s premiere institutional conference returns to London in October 2025. Use code 0x100 for £100 off at checkout: <a href="https://blockworks.co/event/digital-asset-summit-2025-london">https://blockworks.co/event/digital-asset-summit-2025-london</a>
--
Blockworks is hiring a Research Data Analyst. If you live in SQL and love making sense of onchain chaos, apply today: <a href="https://jobs.ashbyhq.com/Blockworks?utm_source=EQPb2dAAxr">https://jobs.ashbyhq.com/Blockworks?utm_source=EQPb2dAAxr</a>
--
Subscribe on YouTube: https://bit.ly/3foDS38
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Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: <a href="https://blockworks.co/newsletter/">https://blockworks.co/newsletter/</a>
 
Join the 0xResearch Telegram group: <a href="https://t.me/+UFFz4z3qyrhhMDYx">https://t.me/+UFFz4z3qyrhhMDYx</a>
--
Timestamps:
(0:00) Introduction
(1:25) The Ultimate Vision For Forward Industries
(8:54) Raising $1.65B For Forward Industries
(10:52) Partnering With Jump &amp; Galaxy
(16:31) Ads (Katana &amp; EigenCloud)
(17:28) Integrating DATs Into DeFi
(25:22) M&amp;A Strategies
(30:00) BTC vs SOL DATs
(32:28) Ads (Katana &amp; EigenCloud)
(33:36) How Will SOL ETFs Impact Solana DATs?
(35:45) What's Next For Forward Industries?
(41:55) Lessons Learned From Hyperliquid's USDH
(46:36) Allora Ad
(47:08) The Internet Capital Markets Thesis
(53:58) Stablecoins Are Crypto's iPhone Moment
--
Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place
 
Blockworks Research: https://www.blockworksresearch.com/
Free Daily Newsletter: https://blockworks.co/newsletter
--
Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.

Building The Largest Solana Treasury Company | Kyle Samani

In this episode, we’re joined by Charlie from Felix to discuss USDH competition, stablecoin liquidity on Hyperliquid, HIP-3 and quote assets, points strategies, volatile lending rates, HyperEVM’s direction, DATs, and Felix Chapter Two.
Thanks for tuning in!
 
As always, remember this podcast is for informational purposes only, and any views expressed by anyone on the show are solely their opinions, not financial advice.
--
Allora is the new AI standard for DeFi platforms and agents to achieve sharper, faster, and more reliable financial systems than any single language model can offer. Instead of choosing and managing models, users state their goal, and the system delivers the best result. 
 
To learn more about Allora Network, visit https://www.allora.network/ and <a href="https://x.com/AlloraNetwork">https://x.com/AlloraNetwork</a>.
--
Crypto’s premiere institutional conference returns to London in October 2025. Use code 0x100 for £100 off at checkout: <a href="https://blockworks.co/event/digital-asset-summit-2025-london">https://blockworks.co/event/digital-asset-summit-2025-london</a>
--
Blockworks is hiring a Research Data Analyst. If you live in SQL and love making sense of onchain chaos, apply today: <a href="https://jobs.ashbyhq.com/Blockworks?utm_source=EQPb2dAAxr">https://jobs.ashbyhq.com/Blockworks?utm_source=EQPb2dAAxr</a>
--
Follow Felix: https://x.com/felixprotocol
Follow Charlie: <a href="https://x.com/0xBroze">https://x.com/0xBroze</a>
Follow Shaunda: https://x.com/shaundadevens
Follow Danny: https://x.com/defi_kay_
Follow Boccaccio: https://x.com/salveboccaccio
Follow Blockworks Research: https://x.com/blockworksres
 
Subscribe on YouTube: https://bit.ly/3foDS38
Subscribe on Apple: https://apple.co/3SNhUEt
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Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: <a href="https://blockworks.co/newsletter/">https://blockworks.co/newsletter/</a>
 
Join the 0xResearch Telegram group: <a href="https://t.me/+UFFz4z3qyrhhMDYx">https://t.me/+UFFz4z3qyrhhMDYx</a>
--
Timestamps:
(0:00) Introduction
(1:40) Overview of Felix
(7:05) Thoughts on USDH
(20:23) Hyperliquid Quote Assets
(22:21) Felix Product Offering Going Forward
(26:49) Shaunda's Strategy
(28:43) Allora Ad
(29:15) Interest Rates on HyperEVM
(33:00) The HyperEVM's Evolution
(38:55) What's Charlie Excited About?
(41:54) Felix's Future
--
Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place
 
Blockworks Research: https://www.blockworksresearch.com/
Free Daily Newsletter: https://blockworks.co/newsletter
--
Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Boccaccio, Danny, and our guests may hold positions in the companies, funds, or projects discussed.

HIP-3, USDH, and Felix | Charlie

This week, we went live to discuss Pump’s rebound, Base’s token exploration and potential effects on ETH, Optimism, and Arbitrum, and Solana DAT inflows, ETF prospects, and market mechanics around liquidity, fees, and inflation. 
Thanks for tuning in!
 
As always, remember this podcast is for informational purposes only, and any views expressed by anyone on the show are solely their opinions, not financial advice.
--
Katana is a DeFi-first chain built for deep liquidity and real yield, by redirecting chain revenue back to active DeFi users. The 1 billion KAT campaign is live. Bridge and deposit directly into vaults in one simple click and start earning immediately on your ETH, BTC, USDC, and more. 
 
Go to app.katana.network to check it out. 
--
Is your treasury losing value to inflation? Learn how to make digital assets like ETH and SOL productive with uncorrelated, protocol-driven staking rewards. 
 
A new report from Liquid Collective and EigenCloud outlines a practical guide for CFOs to integrate institutional-grade staking and restaking. 
 
Read The Productive Treasury Report: https://liquidcollective.io/corporate-treasury-staking/ 
--
Crypto’s premiere institutional conference returns to London in October 2025. Use code 0x100 for £100 off at checkout: <a href="https://blockworks.co/event/digital-asset-summit-2025-london">https://blockworks.co/event/digital-asset-summit-2025-london</a>
--
Blockworks is hiring a Research Data Analyst. If you live in SQL and love making sense of onchain chaos, apply today: <a href="https://jobs.ashbyhq.com/Blockworks?utm_source=EQPb2dAAxr">https://jobs.ashbyhq.com/Blockworks?utm_source=EQPb2dAAxr</a>
--
Follow Ian: https://x.com/Ian_Unsworth
Follow Teddy: https://x.com/Teddy_oost
Follow Ryan: https://x.com/_ryanrconnor
Follow Danny: https://x.com/defi_kay_
Follow Boccaccio: https://x.com/salveboccaccio
Follow Blockworks Research: https://x.com/blockworksres
 
Subscribe on YouTube: https://bit.ly/3foDS38
Subscribe on Apple: https://apple.co/3SNhUEt
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Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: <a href="https://blockworks.co/newsletter/">https://blockworks.co/newsletter/</a>
 
Join the 0xResearch Telegram group: <a href="https://t.me/+UFFz4z3qyrhhMDYx">https://t.me/+UFFz4z3qyrhhMDYx</a>
--
Timestamps:
(0:00) Introduction
(3:54) Pumpfun's Dominance
(38:59) Ads (Katana &amp; EigenCloud)
(40:08) Is A Base Token Coming?
(59:26) Ads (Katana &amp; EigenCloud)
(1:00:33) Solana DATs
--
Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place
 
Blockworks Research: https://www.blockworksresearch.com/
Free Daily Newsletter: https://blockworks.co/newsletter
--
Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Boccaccio, Danny, and our guests may hold positions in the companies, funds, or projects discussed.

Base Token, Pumpfun’s Rise, and Solana DATs | Livestream

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/0xresearch">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



The long-awaited Fed rate cut finally arrived yesterday, with the central bank lowering rates <a href="https://blockworks.co/news/fed-cuts-interest-rates-25-bps">by 25 bps</a> in its first move since December 2024. Adding to the bullish sentiment, Fed officials also signaled expectations for two more cuts in 2025, though only one more is penciled in for 2026.



Risk appetite surged in response. Memes, AI and gaming emerged as the top three performing sectors over the past 24 hours, all outpacing bitcoin and signaling a rotation of capital further down the risk curve.



Whether this trend holds depends on how incoming data aligns with a soft landing narrative. For now, recession fears are fading, with Kalshi pricing just a <a href="https://kalshi.com/markets/kxrecssnber/recession/recssnber-25">6% chance</a> of a 2025 recession, the lowest odds yet.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1473" height="802" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=1024&amp;h=1024" alt="" class="wp-image-107992" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=1473 1473w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-133.png?w=80 80w" sizes="auto, (max-width: 1473px) 100vw, 1473px" /></figure>



A standout major this week has been BNB, which is up over 10% in the last seven days. While often overlooked, BNB has quietly delivered some of the strongest returns this year, outperforming most L1s and ranking second only to HYPE.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=1024&amp;h=1024" alt="" class="wp-image-107993" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-134.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Both quantitative and qualitative factors help explain the strength seen since the start of the month. On the narrative side, rumors have been swirling that Binance founder CZ may be returning after changing his X profile from ex-Binance back to Binance. At the same time, Polymarket <a href="https://polymarket.com/event/who-will-trump-pardon-in-2025?tid=1758181204687">odds</a> for a Trump presidential pardon for CZ have surged from 25% to 46% since early September. CZ, who pleaded guilty in November 2023 for failing to maintain an effective AML program, resigned as CEO as part of Binance’s $4.3 billion settlement. These shifts may not be a mere coincidence.



Adding to the mix, Binance is reportedly <a href="https://cointelegraph.com/news/binance-doj-compliance-monitor-settlement">in talks</a> with the DOJ to remove a key oversight measure from that settlement, which, if approved, could ease regulatory and compliance pressures on the exchange.



On the onchain side, momentum is clear. Weekly net revenue is up 45% WoW.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=1024&amp;h=1024" alt="" class="wp-image-107991" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-132.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Average daily transactions are up 8.5% MoM and an eye-popping 200% since the start of the year. Recent token launches on BSC, such as STBL and ASTER, are fueling activity as well, surging 250% and 450%, respectively, since launch. Whether these gains are organic or orchestrated, such opportunities are drawing more traders onchain, eager to catch the next multiple.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=1024&amp;h=1024" alt="" class="wp-image-107994" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-135.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



BNB has successfully leveraged the synergy between its centralized exchange and its native chain, creating a powerful feedback loop. Once dismissed as a background player, BNB is proving that sometimes the quietest performers make the loudest statements.



<h1 class="wp-block-heading">AsterDEX: Will Binance fight back?</h1>



Alongside BNB’s recent outperformance, Binance’s ecosystem has seen isolated pockets of extreme performance that don’t appear entirely fundamentals-driven. The clearest example is MYX Finance, a perpetual DEX on BNB Chain, which has skyrocketed to a $3.32 billion market cap and a $16.9 billion FDV.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=1024&amp;h=1024" alt="" class="wp-image-107995" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-136.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Like many other similar coins, the run-up has been violent. MYX rose from $0.10 in August to $16.82 today, a 168x increase. Yet, daily volumes have remained relatively flat since the initial surge in May-June. Open interest on MYX, often a better gauge of real perpetual activity, is just $1.8 million, compared with Hyperliquid’s $14.2 billion. Put differently, MYX trades at 3.3x lower FDV than Hyperliquid while holding 7,888x less open interest.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1494" height="738" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=1024&amp;h=1024" alt="" class="wp-image-107990" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=1494 1494w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-131.png?w=80 80w" sizes="auto, (max-width: 1494px) 100vw, 1494px" /><figcaption class="wp-element-caption">Source: <a href="http://velo.xyz">Velo.xyz</a></figcaption></figure>



Despite this disconnect, shorting MYX has been nearly impossible. The token’s supply appears tightly cornered, and funding rates remain deeply negative (–20% every eight hours), punishing shorts even as price grinds higher. Historically, such divergences between price and funding are rare, but the same setup has appeared in assets like TRB and AUCTION, which also experienced sharp, thin-float rallies.



On that note, Aster has emerged as another “flavor of the month,” with the narrative framing it as CZ’s response to Hyperliquid. With MYX showing how stretched valuations can become, and YZi Labs (Binance Labs investment arm, with CZ on the team) as backers, many see this as an opportunity to position early in AsterDEX. Beyond being a perp DEX, AsterDEX highlights:



<ul class="wp-block-list">
<li>Hidden Orders (dark-pool style execution)</li>



<li>USDF (a stablecoin backed by delta-neutral positions)</li>



<li>Leverage up to 1001×</li>
</ul>



However, for now, metrics like open interest or latency are secondary, and the orderbook makes trading in meaningful size nearly impossible.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1014" height="1134" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=1024&amp;h=1024" alt="" class="wp-image-108000" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=1014 1014w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=268 268w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=916 916w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=230 230w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=233 233w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=196 196w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/Screenshot-2025-09-18-at-12.03.59.png?w=72 72w" sizes="auto, (max-width: 1014px) 100vw, 1014px" /></figure>



Regardless, this is not shaping up as a fundamentals-driven story. Instead, there is a large pool of HYPE sideliners who have watched the token rip higher for months with zero exposure, and when they finally get their moment they are likely to be equally as loud and aggressive. In my opinion, from a metrics standpoint it is hard to make a good-faith case to buy, but it makes even less sense to short, which seems a lot like standing in front of a steamroller to pick up pennies, especially when that steamroller might have CZ in the driver’s seat.



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0xResearch Newsletter

CZ’s return sends BNB rallying

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/0xresearch" target="_blank" rel="noreferrer noopener">subscribe</a>.



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The past three days on the timeline have been strictly focused on the bid for USDH, a ticker on Hyperliquid.



As background, the USDH ticker, currently reserved, is set to be released through an onchain validator vote with the goal of launching a Hyperliquid-first and compliant USD stablecoin. Validators will vote on which team may purchase and deploy the ticker, using the same onchain mechanism as delisting votes. Teams interested must submit proposals in the USDH Discord forum, including their address, and the approved team will still need to participate in the spot deploy gas auction.



In the longer term, spot quote assets will become permissionless, starting with testnet, with staking and slashing requirements to be announced. The USDH ticker does not carry special privileges and will exist alongside multiple stablecoins within the Hyperliquid ecosystem. Voting for the ticker is based on stake, with proposals due by Sept. 10 at 10:00 UTC, validator intent to be declared by Sept. 11 at 10:00 UTC, and the final vote to occur on Sept. 14 between 10:00-11:00 UTC.&nbsp;



As of today, nine validators have announced who they intend to vote for, with six voting for Native Markets, two for Paxos and one for Ethena. The remaining 10 validators, who hold approximately 58% of stake, are unassigned (86.76M HYPE). Native Markets is currently in the lead with 30.8% of voting share, while Ethena and Paxos combine for 11.6%.&nbsp;



In terms of benefits for Hyperliquid and HYPE, there are a few things to consider. Firstly, it is interesting to see that incumbents from large teams (Ethena, Paxos etc.) are battling out to gain dominance within Hyperliquid by giving up a large percentage of their revenue.&nbsp;



Context regarding the three most relevant proposals:



<ul class="wp-block-list">
<li>Paxos: Milestone-based. Starts at 20% AF when &lt;$1 billion, rising to 70% at >$5 billion, capped at 70%.</li>



<li>Ethena: 95% passthrough to AF/HYPE, KPI could drop to 90% with 5% to an Ethena entity.</li>



<li>Native Markets: 50% of reserve yield streamed to AF, remaining 50% for growth across HIP-3, builder codes and DeFi frontends.</li>
</ul>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=1024&amp;h=1024" alt="" class="wp-image-107507" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-71.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



For Ethena, the lowest contribution to the Assistance Fund would still be more than $40 million per year, even in the conservative KPI scenario. At full scale, its contribution rises to nearly $250 million, making it the strongest provider of direct economic value among the three. For Paxos, the lowest level of contribution is around $9 million per year at small scale, while its highest contribution tops out at roughly $183 million once it reaches the largest market share bracket. Native Markets, with a fixed 50% allocation, is currently the leader based on declared intent. Its range runs from about $23 million per year at the low end to around $130 million at full capture.



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USDH and the search for another AF

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Crypto markets have had a positive start to the week, with clear outperformers but for very different reasons. The chart below shows the week-over-week performance of various assets as of Sept. 8. We observe that WLD (+84%), PUMP (+39%), ENA (+25%), HYPE (+18%), and SOL (+9%) have shown remarkable relative strength against BTC (+3%) and ETH (flat).



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1024&amp;h=1024" alt="" class="wp-image-107449" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Let&#8217;s start discussing HYPE and PUMP, whose outperformance has been primarily fundamentals- or value-driven. Regarding Hyperliquid, major stablecoin issuers including Paxos, Frax, Sky and Agora are outbidding each other ahead of a Sept. 14 validator governance vote that will determine who gets to have Hyperliquid&#8217;s native &#8220;USDH&#8221; ticker, with proposals offering aggressive revenue-sharing agreements (up to 100%).



The USDH debate has centered around institution- vs. native-team issuance and ecosystem alignment. For instance, Native Markets, led by Max Fiege,<a href="https://nativemarkets.substack.com/p/expanded-proposal-native-markets"> proposed</a> that 50% of the reserve yield be immutably contributed to the Assistance Fund, while the other 50% be dedicated to USDH growth through partnerships with builder-code interfaces, HIP-3 markets and HyperEVM apps. Paxos, on the other hand,<a href="https://x.com/Paxos/status/1964422295176564937"> proposed</a> allocating 95% of interest from reserves backing USDH to buy back HYPE and redistributing it to applications and validators proportional to their USDH balances across their platforms.



While Native Markets would be GENIUS-compliant via Bridge, Paxos has highlighted its already proven global regulatory coverage and reach (not only GENIUS, but also MiCA and MAS-compliant), with existing payment corridor integrations across the Middle East, Latam, Africa and Asia. While it&#8217;s still unclear who will come out on top, it&#8217;s evident that Hyperliquid wins regardless. Migrating $5 billion in USDC deposits to USDH could represent an additional $200 million in revenue for Hyperliquid annually, representing ~20% of its ~$1 billion revenue run rate. At the same time, the battle to win the USDH ticker showcases the conviction and value these issuers see in Hyperliquid&#8217;s exchange and the HyperEVM ecosystem, with HYPE hitting an all-time high of $52.67 today.



While Hyperliquid has been the center of attention, PUMP has actually been the best-performing asset of the two in the past week, up 39% (vs. 18% for HYPE). Pump has decisively reclaimed its launchpad market share, now above 85%, running at an annualized revenue rate of $540 million and using 100% of its revenues to buy back the token. Moreover, it remains surprisingly attractively priced, with a circulating P/S of three and FDV/Sales of&nbsp; nine.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1024&amp;h=1024" alt="" class="wp-image-107450" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The other side of HYPE and PUMP&#8217;s fundamentals-driven price increases are SOL, ENA, and WLD’s DATCO-driven flows. Yesterday, Forward Industries (NASDAQ: FORD), Galaxy-Multicoin’s SOL DATCO, announced<a href="https://www.businesswire.com/news/home/20250907677362/en/Forward-Industries-Inc.-Announces-%241.65-Billion-Private-Placement-in-Cash-and-Stablecoin-Commitments-Led-by-Galaxy-Digital-Jump-Crypto-and-Multicoin-Capital-to-Initiate-Solana-Treasury-Strategy"> $1.65 billion</a> in cash and stablecoin commitments, confirming <a href="https://blockworks.co/news/samani-expected-chairman-solana-treasury">Kyle Samani as chairman</a>. With this announcement, the big question regarding whether DATCO purchases would translate to buying SOL with cash on the secondary market vs. simply purchasing locked SOL at a discount has been answered. Combined with Solana ETFs under the &#8217;33 Act likely being approved in October, SOL is poised for outperformance into year-end as the third crypto asset with a structural funnel to TradFi flows after BTC and ETH.



On its part, StablecoinX<a href="https://x.com/ethena_labs/status/1964063567772340432"> announced</a> on Friday an additional $530 million capital raise to buy ENA on the open market. The planned deployment schedule for ENA purchases will be dynamic based on price: $5 million per day if ENA is above $0.70, and $10 million per day if ENA is below $0.70 or if it&#8217;s down more than 5% in a 24-hour period. Importantly, the Ethena Foundation has the right to veto any sales of ENA by StablecoinX at its sole discretion.



Finally, Eightco Holdings (NASDAQ: OCTO) <a href="https://www.prnewswire.com/news-releases/eightco-holdings-inc-octo-announces-250-million-private-placement-with-an-additional-20-million-strategic-investment-from-bitmine-bmnr-to-initiate-worlds-first-worldcoin-wld-treasury-strategy-302549012.html">announced</a> on Monday a $250 million raise to implement the first Worldcoin-focused DATCO strategy, with Dan Ives appointed as chairman. Notably, Tom Lee’s Bitmine (BMNR) had purchased 13.7 million shares of OCTO at $1.46, which rose ~3,000% to $45 on Monday, meaning that the $20 million investment is now worth more than $600 million. On its part, WLD rose as much as 85% on Monday, hitting a high of $1.92.



The contrast between value- vs. momentum-driven price action is interesting to think about, especially in the context of investment horizons and sustainability of flows. The buying pressure from DATCOs has been telegraphed to the market, leading to frontrunning by traders and investors. The main uncertainty for these vehicles is whether they will trade at a premium to NAV, in which case they will be able to sell equity to buy more of the underlying token, à la BMNR. On the other hand, Hyperliquid and Pump&#8217;s flows are more reliant on these apps expanding their leading position in each of their respective verticals and increasing their revenue (and thus buybacks) growth rate. That is, of course, not to say assets like SOL and ENA are devoid of fundamentals, since they have clearly found product-market fit and are quality tokens. Still, the majority of their inflows in the past few weeks have come from DATCOs&#8217; expectations as opposed to fundamental catalysts.



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Hyperliquid’s USDH battle and the DATCO bid

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Tron cut transaction fees by 60% last Friday. While this looks like a move to improve accessibility, the real driver is almost certainly the looming launch of Plasma, which will enable zero-fee USDT transfers.



Tron’s moat has always been its distribution. Users continue to transact on Tron despite much cheaper alternatives, a sign of the deep merchant and banking ties it has built, especially in Latin America. The fact that Tron is now lowering fees could suggest this moat is being threatened.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=1024&amp;h=1024" alt="" class="wp-image-107131" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-25.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The stakes are high. Around <a href="https://app.artemisanalytics.com/application-activity/tron?chartMetric=GAS_FEES_USD">90% of Tron’s revenue</a> comes from USDT transfers. Even after the recent cut, average fees sit at $2.80 per transaction, nearly 5x Ethereum’s $0.60. Over the past month, Tron’s USDT supply has <a href="https://defillama.com/stablecoins/Tron">fallen 1.4%</a>, representing around $1.1 billion of outflows. At the same time, Plasma’s pre-launch campaigns have already attracted <a href="https://x.com/PlasmaFDN/status/1961340200237342947">$2 billion in USDT deposits</a>.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=1024&amp;h=1024" alt="" class="wp-image-107133" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-27.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Financially, Tron remains solid. On August numbers, the fee cut would drop it from the third to the fourth largest chain by revenue, though it would still generate twice as much as BNB. Its FDV/Fees multiple would shift from roughly Hype’s 36x to Solana’s 135x, a level still well below the broader L1 group.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=1024&amp;h=1024" alt="" class="wp-image-107132" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-26.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



For the first time, Tron faces a serious challenger in its core market. Only time will tell if the fee cut is sufficient to keep Tron competitive and sustain stablecoin volumes on the network.



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Tron’s fee gamble

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Ethereum is having its moment in the spotlight, and while its performance has been attributed to flows from digital asset treasury companies (DATCOs) and ETFs, its price wasn’t the only metric that hit an all-time high. For the second consecutive month, ETH’s price action was accompanied by record levels of perp volume. August saw nearly $2 trillion in volume, 30% more than July’s $1.5 trillion.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=1024&amp;h=1024" alt="" class="wp-image-107052" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-15.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



August also marked Ethereum’s highest DA usage ever, and its market share increased from ~53% in July to 63% in August. However, since the blob target of six still hasn’t been hit (average of 4.17 in August vs. 4.13 in July), the cost of blobs remains extremely low (near one wei). In the upcoming <a href="https://blockworks.co/news/ethereum-devs-fusaka-conflict">Fusaka upgrade</a>, a “floor price” will be implemented to help address this issue.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=1024&amp;h=1024" alt="" class="wp-image-107053" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-16.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Thanks to a 50% increase in the gas limit YTD, monthly active addresses (MAAs) also hit an all-time high of 16.8 million (a 12.7% increase from July’s 14.9 million) while transaction count followed suit with ~51.7 million (an 11% increase MoM).&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=1024&amp;h=1024" alt="" class="wp-image-107051" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-14.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



And just in case you were wondering why Ethereum has the stablecoin narrative — the stablecoin supply on Ethereum reached $163 billion, a new all-time high and the highest among any chain. Stablecoin transfer volume on Ethereum also hit an all-time high in August, rising 17% MoM to $1.43 trillion (vs. $1.23 trillion in July). This marked the second month on record with (filtered) transfer volumes over $1 trillion.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=1024&amp;h=1024" alt="" class="wp-image-107050" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-13.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Maybe flows alone aren’t telling the full story?



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ETH’s price isn’t the only metric trending up

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<a href="https://blockworks.co/news/solana-prepares-for-alpenglow">Last week</a>, we dove deep into SIMD-326 (Alpenglow), which proposes a new consensus protocol for Solana. The headline impact of Alpenglow is a 100x reduction in Solana&#8217;s finality time, from ~12.8 seconds to around 150ms. 



A validator-signaling vote for SIMD-326 took place between epochs 840 (starting Aug. 27) and 842 (ending today), with a preliminary stake participation rate of 51% as of writing.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=1024&amp;h=1024" alt="" class="wp-image-106970" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-6.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



SIMD-326 will pass, with ~99% of non-abstaining votes in favor. With Alpenglow&#8217;s voting period coming to a close, it&#8217;s a good time for a refresher on how Solana governance works.&nbsp;



Solana&#8217;s onchain governance is meant to signal community sentiment rather than automatic enforcement of changes. In other words, social consensus is the final arbiter, with the real decision point resting with validators and developers who must collectively agree to deploy and run the new software. A key stakeholder in this process is the Anza team, which must design and roll out changes in the Agave client via<a href="https://github.com/anza-xyz/agave/wiki/Feature-Gate-Tracker-Schedule"> feature gates</a>. &nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=1024&amp;h=1024" alt="" class="wp-image-106969" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-5.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



With this context in mind, all Solana Improvement Documents (SIMDs) formally begin as written proposals on <a href="https://github.com/solana-foundation/solana-improvement-documents">Solana’s GitHub</a>. In this stage, the community and core contributors can openly discuss and adjust variables before a SIMD goes into a vote, implement it without requiring one, or outright reject it before that happens. Forum discussions play a crucial role in Solana governance by enabling structured, thoughtful debate on proposals​ and their potential effects.&nbsp;



Solana’s onchain governance model is akin to a representative democracy in the sense that validators vote on behalf of stakers, who are free to delegate their staked SOL to any validator. Each validator’s voting power is proportional to the stake delegated to them, and validators can even split their vote weight among distinct options if they choose (Yes, No, or Abstain). Typically, the voting period for any given SIMD lasts three epochs (around six days).



Finally, Solana requires two parameters for a SIMD vote to pass. The first is the quorum threshold: At least 33% of the total stake must participate (including abstains) for the vote to be valid. The second requirement is the supermajority: At least two-thirds of non-abstaining votes must be &#8220;Yes&#8221; for the proposal to pass. SIMD-326 received overwhelming support compared to more contentious proposals, such as SIMD-96 (which discontinued the burn on priority fees), SIMD-123 (which will implement an in-protocol way to distribute priority fees), and SIMD-228 (the <a href="https://blockworks.co/news/what-simd-0228-failing-means-for-solana">infamous failed</a> inflation reduction proposal).



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Inside Solana’s governance as Alpenglow passes

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Solana’s consensus stack, proof-of-history sequenced with TowerBFT, has always delivered faster block times than competitors. But finality still sits around <a href="https://www.helius.dev/blog/solana-commitment-levels">10-20 seconds</a>, far from the <a href="https://blockworks.co/news/nasdaq-on-solana-opening-bell-sol-strategies">Nasdaq-level</a> latency Solana aspires to.



<a href="https://forum.solana.com/t/simd-0326-proposal-for-the-new-alpenglow-consensus-protocol/4236?utm_source=chatgpt.com">SIMD-0326 (“Alpenglow”)</a> proposes cutting finality to ~100-150ms by moving validator voting off-chain. Today, validators continuously post votes onchain to signal fork choice, and these votes dominate throughput despite carrying no user value.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXep-a2mLDrML2PqhV7_I3cZcXheUNUMCvLGzKzNsibs7NUiDFVpVXsJR5spqn8eQ4GI4iiaRDP7IDBz3JBNePOjlWx8B1i0dDBywoA5NIPArzpJp4X9RKow_rlOo7Fn5q8__6meyw?key=bDbckPlQ3bo3NOrYyaM8OA" alt=""/><figcaption class="wp-element-caption">Source: <a href="https://solscan.io/analytics#txs">SolScan</a></figcaption></figure>



Under Alpenglow, validators instead pay a fixed “Admission Ticket” of 1.6 SOL per epoch, burned to the network. Leaders then gather votes off-chain through a component called Votor, compress them into certificates, and write those certificates onchain. The result is a swap: Millions of low-value vote transactions are replaced by one predictable fee per validator, lowering consensus overhead by ~20% and freeing blockspace for user activity.



The design also adjusts fault tolerance. TowerBFT today remains live unless more than 33% of stake is adversarial. Alpenglow introduces a “20+20” model, where the chain stays live with 20% malicious stake and another 20% offline. For applications like DeFi, specifically perpetual exchanges like Drift, sub-second finality transforms Solana from “fast” into a real-time settlement layer.



The economics are still under debate. Smaller validators face a flat 1.6 SOL per epoch fee regardless of stake, while reward flows remain undefined. Governance discussions (epochs 833-842) have emphasized the need for a clear rollout path, including sequencing for Alpenglow’s components. Still, if implemented, SIMD-0326 would represent one of Solana’s most significant structural upgrades.



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Solana prepares for Alpenglow

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One of the key things I like to track in crypto is a subjective criterion I call “where are new interesting developments and proposals taking place.” There are plenty of dashboards and analytics sites for this, the most popular being the Electric Capital site. The issue is that it still shows Polkadot as having a lot of developers. (At Blockworks we solved the noise problem with active users; maybe we can try the same for active developers.) Because of this noise, I prefer to track two simple observations:



<ul class="wp-block-list">
<li>What is the velocity of new products launching, and how much mindshare are these products capturing?</li>



<li>Are many people getting nerdsniped into discussing the novelties and intricacies of the chain?</li>
</ul>



A related point is the caliber of people being attracted to new ecosystems.



For example, over the past few years, Solana (and Ethereum) attracted the majority of talent. Talent generally goes where:



<ul class="wp-block-list">
<li>It can solve interesting problems or create interesting projects.</li>



<li>It can make a lot of money.</li>
</ul>



In a podcast I did <a href="https://www.youtube.com/watch?v=aw5K9o5b--o">with Icebergy about a year ago</a>, we discussed how crypto still wasn’t attracting talent at the levels AI was, despite offering faster exits and more money. AI was (and probably still is) more interesting to most talent and seen as more prestigious. After FTX, crypto lost a lot of credibility and has only recently started recovering as larger institutional players re-entered. Apart from FTX, crypto has also been criticized for being full of low-effort forks and limited utility products. This dynamic isn’t unique to crypto though. Many AI companies are also just building wrappers around GPT, which is as uninteresting as some projects in crypto.



Anyway, to the point: Historically, Solana has captured the majority of attention from talent and developers. Regardless of personal views, launchpads, internet capital markets (RIP), creator capital markets, TCGs and prop AMMs have been popular over the past year, drawing developers to the ecosystem. They offer opportunities to solve problems, build products, and make money.



Solana continues to attract talent. There’s still a lot of money on the chain, high velocity of that money, and constant issuance of new tokens. Developers want to capture some of that revenue by building something unique, slightly different, or just a variation with new incentives. Ethereum has had this dynamic too, and still does. Many new AMM structures were first developed on Ethereum and by Ethereum-native founders. More recently, interest has grown in prediction markets. Many who once focused on perpetual markets have shifted to writing about prediction markets as well.



Beyond this, the main point of today’s note is that Hyperliquid has been gaining increasing attention from builders and talent. In a <a href="https://www.youtube.com/watch?v=zavyhzPZri0">recent podcast with Charlie from Felix</a>, we talked about how many of the basic elements of the L1 HyperEVM have already been built. A common criticism Charlie recognized is that most HyperEVM projects are forks or ports of existing products. This criticism is common for new chains, and it makes sense: Every new chain needs certain basic elements to function properly, such as lending markets, AMMs, bridges and so on. Still, aside from the HyperEVM, we’re also seeing growing interest in Hypercore from both talent and researchers.



This is reinforced by the large number of articles and research written on HIP-3.&nbsp; Bedlam Research has also discussed HIP-3 implementations previously, specifically discussing:



<ul class="wp-block-list">
<li>Risk tranching and delegated staking: Builders can pool HYPE from multiple holders, letting them share in fees while managing exposure through senior and junior tranches that take on different levels of slashing risk.</li>



<li>Fees and fee structure experiments: Instead of only rewarding stakers, fees can incentivize liquidity providers and takers, or be tokenized into yield streams; alternative fee schedules like charging only on winning trades are also possible.</li>



<li>New market types: HIP-3 allows deployment of markets beyond crypto, including equities, commodities, leveraged tokens, asset baskets, pair trades, event-contingent markets and even markets tied to DEX fee performance.</li>



<li>Collateral management: Since HIP-3 DEXs are siloed, collateral cannot easily move across venues; prime brokerage-style services could emerge to consolidate risk, transfer collateral, and provide margin financing across multiple DEXs.</li>
</ul>



In its HIP-4 proposal posted yesterday, Bedlam discussed how to extend builder-deployed perps into a format suited for prediction markets. It proposes Event Perpetuals as a way to address HIP-3’s limitations, since continuous oracles and capped price adjustments do not work for binary events that resolve instantly. The design represents probabilities directly on the order book, with values between 0 and 1 reflecting the likelihood of a “YES” outcome.



In practice, it operates like this:



<ul class="wp-block-list">
<li>Binary payoff, settling at either 0 or 1 once the event resolves.</li>



<li>No continuous oracle or funding, prices set only by trading.</li>



<li>Isolated 1x margining, with collateral depending on buying YES or NO.</li>



<li>Opening auction to determine the first market price before trading begins.</li>



<li>Continuous trading within bands of 0.001 to 0.999, no leverage.</li>



<li>Resolution through a single oracle update, with optional dispute window.</li>



<li>Settlement by halting trading, canceling orders, and closing positions.</li>



<li>Builders stake 1 million HYPE to deploy markets and define event details.</li>



<li>Markets can be recycled after resolution, and builders can set extra fees.</li>
</ul>



I highly recommend that anybody reading today’s newsletter check out <a href="https://www.bedlamresear.ch/posts/hip-4-event-perpetuals/">Bedlam Research</a>. I also encourage you to think about what edge your ecosystem or chain really has. As more chains have launched and gotten faster, differentiation is less about raw tech and more about something else. Many chains fail simply because they are designed to fail. They launch with an “innovation” that is irrelevant (15K TPS vs. 13K is not innovation) or uninteresting (for example, another restaking-focused chain).



Ask yourself: Are you investing in products, applications or tokens on chains that are actually nerdsniping developers and talent? Are there interesting, novel applications and features being discussed? If not, take a step back and ask why. Why is talent ignoring your chain?



Crypto is one of the easiest ways for developers and engineers to make money. If talent doesn’t think they can make money on a chain, consider two things: (1) will this change in the future? (2) are you looking in the wrong places?



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Is Hyperliquid the new frontier for innovation?

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Whether or not Base would have a token has long been a discussion point ever since the L2 launched in mid-2023. On Monday at BaseCamp 2025, Jesse Pollak <a href="https://x.com/base/status/1967602096360063341">disclosed</a> that Base is exploring the possibility of launching a token for the L2.&nbsp;



By all metrics, Base is the leading L2. It consistently accounts for over 70% of L2 gross profit, 70% of L2 transaction activity, $4.4 billion in stablecoins, and ~$20 million in monthly application revenue.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png" alt="" class="wp-image-107853" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=900 900w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-122.png?w=80 80w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure>



In August, Base generated $6.2 million in network REV, annualized out to $75 million. Base remains one of the only L2s without a token.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png" alt="" class="wp-image-107854" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=900 900w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-123.png?w=80 80w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure>



As the largest L2 generating the most in profits, what could the Base token be worth? Examining some competitor L2s (Arbitrum, Optimism, and ZKsync), show these tokens trade at lofty price-to-sales ratios of 280x, 820x, and 1600x, respectively. This puts the sector mean at a P/S of 900x.&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png" alt="" class="wp-image-107856" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=900 900w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-125.png?w=80 80w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure>



Applying this 900x multiple to Base’s $75 million in annualized REV puts a potential FDV on a Base token at $67 billion. To be priced in line with ARB at a 280x multiple, this would price Base’s token at a $21 billion FDV. Are these projections “fair-value” for a Base token? Absolutely not. But it does go to show the market value it could command is consistent with the sector’s multiples.&nbsp;



The napkin math forecasts are dramatic. Could launching a token really create tens of billions in market value for stakeholders? Coinbase equity is trading at a $84 billion market cap. This puts Coinbase at 7x last quarter’s sales, annualized, while revenues from Base account for less than 1% of the company’s topline sales. Would reattributing this revenue stream from equity holders to an L2 token really deserve a 100x higher multiple? Unlikely; the multiples in the sector are outrageous to begin with.



It’s worth mentioning also that the implications of a Base token would be rife with regulatory scrutiny. Currently, the cash flows of Base’s operations are owned by COIN shareholders, a publicly-listed, registered security. Could a Base token reasonably have a claim on the L2’s cash flows without rugging existing shareholders? And, if the token has no claim, what is it really for?



Decision makers at Coinbase have likely already surveyed the valuation landscape amongst L2s, and they know full well they are sitting on the cash cow of this sector. The decision to launch a token presents tradeoffs, and tradeoffs that may actually favor shareholders. Consider this thought experiment: Say the Base token had a claim on 100% of Base’s gross profit. Coinbase could allocate itself, arbitrarily, two thirds of the Base token supply, with the remainder allocated to ecosystem users and builders. In doing so, Coinbase would forgo $25 million in annual revenue in exchange for a balance sheet asset that perhaps may be worth $14-$44 billion. Forgo $25 million annually in exchange for a one time receipt of tens of billions in token value? I’d take that trade.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="533" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png" alt="" class="wp-image-107855" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=820 820w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=395 395w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=402 402w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=337 337w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-124.png?w=80 80w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



While the moonpath on a Base token, its market value, the potential wealth effect of a sizable airdrop, and the implications for ecosystem applications like Aerodrome (which traded 10% higher on the news) present a fun exercise, <a href="https://polymarket.com/event/will-base-launch-a-token-in-2025-341?tid=1757958766721">Polymarket’s</a> line on a Base token is pricing the under that it will launch this year. This market has the probability that Base will launch a token in 2025 at just 16%, suggesting these are matters for next year. 



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Why would Base need a token?

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With risk assets back in rally mode, crypto is leaning hard into the easing narrative. Softer inflation data has lifted expectations for Fed cuts, sending majors higher and reigniting speculative flows. In this environment, protocols are reaching for every tool available to capture attention and support valuations, from pump.fun buying ecosystem memes to Lido potentially experimenting with buybacks as a way to bolster token performance.



<h1 class="wp-block-heading">Market Update</h1>



It’s a field of green today with BTC, ETH and SOL up 2.3%, 1.7% and 2.7%, respectively in the last 24 hours. This follows the PPI surprising to the downside, falling 0.1% MoM vs a forecast +0.3%. Traders took it as proof that Trump’s tariffs aren’t fanning inflation.



All eyes now turn to tonight’s CPI print to confirm the trend and pave the path for rate cuts ahead. <a href="https://kalshi.com/markets/kxfeddecision/fed-meeting/kxfeddecision-25sep">Current odds</a> show an 82% chance of a 25bp cut next week, with even a 17% chance of 50bp cut. Expectations for three cuts this year have <a href="https://kalshi.com/markets/kxratecutcount/number-of-rate-cuts/kxratecutcount-25dec31">doubled</a> since last week. The anticipation of an easing cycle has turned sentiment bullish, with Pump the standout performer, up 46% in the last seven seven days.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="448" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024&amp;h=1024" alt="" class="wp-image-107587" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The easing cycle that began last September sparked Solana’s meme season, peaking in December 2024 when the Fed signaled slower cuts ahead. Potential airdrops from Meteora, Seeker, and maybe even Pump in Q4 could fuel the next wave. Historically, infrastructure plays like Raydium and Solana benefited most from meme trading, but flows now tilt towards Pump as a more direct play. In August, pump.fun drove 31% of Solana app revenue and currently dominates <a href="https://dune.com/queries/5440992/8878702">92%</a> of launchpad volumes.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1024&amp;h=1024" alt="" class="wp-image-107588" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Initially criticized as extractive, pump.fun has since emphasized community alignment. Its <a href="https://dune.com/adam_tehc/pumpfun-glass-full-foundation">Glass Full Foundation</a> injects liquidity into ecosystem tokens, while <a href="https://dune.com/adam_tehc/pumpfun-creator-earnings">Project Ascend</a> boosted creator earnings by 12x. Fading a project with PMF is a losing trade, and Pump keeps printing.



— <a href="https://x.com/Kunallegendd">Kunal</a>&nbsp;



<h1 class="wp-block-heading">Lido: Buybacks without profits</h1>



Lido contributors and <a href="https://www.steakhouse.financial/">Steakhouse</a> have proposed <a href="https://research.lido.fi/t/nest-network-economic-support-tokenomics/10648">NEST</a> (Network Economic Support Tokenomics), a buyback sink that uses stETH set aside by the DAO to buy LDO. The mechanism operates as follows:



<ol class="wp-block-list">
<li>Funding: The DAO fills NEST with a chosen amount of stETH via <a href="https://vote.lido.fi/">Aragon</a> votes.</li>



<li>Execution cadence: For any stETH held in NEST, at least one CowSwap order must be created every ~7,000 blocks (approximately once per day), with a maximum order size calibrated to stay under 1% slippage.</li>



<li>Keeper incentive: Whoever triggers an eligible order receives two basis points of the order size in stETH as a reward.</li>
</ol>



Two factors make this proposal particularly interesting. First, Lido DAO will be responsible for filling and topping up the NEST contract with stETH, meaning the buybacks are uncorrelated from the protocol&#8217;s direct earnings, a contrast to the majority of programs that fund themselves with revenue. With Lido&#8217;s treasury holding 26,816 stETH ($115 million), although there&#8217;s no indication of how much will be deployed, it&#8217;s likely that holders will appreciate any form of financial engineering that could support price appreciation.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1024&amp;h=1024" alt="" class="wp-image-107590" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



However, the irony is that Lido DAO has yet to turn a profit. The protocol has accumulated $345.4 million in cumulative losses since 2021, despite processing over $2.68 billion in gross staking rewards. While 2025 shows improvement with losses narrowing to just $200K (approaching breakeven), the fundamental economics remain challenging.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1024&amp;h=1024" alt="" class="wp-image-107589" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Interestingly, the topic has been discussed extensively before, particularly in 2024 after Uniswap&#8217;s fee switch proposal ignited a buyback meta among DeFi 1.0 projects. Hasu pushed back, arguing that revenues are insufficient to cover the runway and that the protocol should wait for profitability before implementing buybacks.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="448" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024&amp;h=1024" alt="" class="wp-image-107586" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



But with LDO trading 78% below its all-time high at $1.26, perhaps the DAO has grown tired of waiting. Watching the whole market pump, the prospect of deploying treasury assets to support token price may be more attractive than enduring another year of underperformance. 



— <a href="https://x.com/shaundadevens">Shaunda</a>



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