Polymarket ‘politics’ markets surge, Celestia rethinks consensus

Also, Maple’s SyrupUSDC can’t stop growing

article-image

BEST-BACKGROUNDS/Shutterstock and Adobe modified by Blockworks

share

This is a segment from the 0xResearch newsletter. To read full editions, subscribe.


We’re kicking off this week with a collection of charts around political markets on Polymarket, Maple’s unstoppable SyrupUSDC growth, and an ambitious Celestia proposal to leave proof-of-stake behind.

Polymarket political markets

Polymarket is back in the limelight amid recent geopolitical conflicts.

In the last week, markets in the “Politics” category saw a jump from $3.9 million to $19.5 million in volumes, as denoted by the light blue bars in the chart below.

Source: Polymarket.

All eyes were focused on the “US military action against Iran before July?” market, which contract resolved yesterday following reports of US strikes on alleged Iran nuclear facilities. The market saw a total $29.9 million in trading volumes.

Just before the market surged to 99%+ near certainty, “Yes” shares on the market had been trading at $0.59, meaning markets were pricing in about a 59% probability of the US taking military action against Iran.

Celestia’s governance

Celestia should abandon proof-of-stake consensus for “proof-of-governance” (PoG), argues Celestia co-founder John Adler in an ambitious new governance proposal.

If passed, the following material changes will be enacted:

  1. TIA issuance will be cut by about 20x, or 95%.
  2. Delegated staking and liquid staking contracts will be phased out. No more onchain governance.
  3. All TIA issuance will be routed solely to validators as payment for running nodes.
  4. Validators would be picked by off-chain governance, because Celestia lacks general execution and is not suited to support onchain token voting. 
  5. Network fees would be burned as a form of value accrual to TIA token holders. Celestia’s protocol fees amount to $100–$300 daily.

TL;DR: Reduce Celestia’s constant emissions in a bid to stave off its declining price action (see chart).

Source: Blockworks Research.

The proposal challenges many common sense “wisdoms” of Ethereum thought, namely where a chain’s “economic security” is derived from (not slashing), the framing of PoS as really permissioned “proof-of-authority,” and how to think about “blockchain profitability.” Expect Ethereum maxis to be triggered.

SyrupUSDC growth

Maple’s yield-bearing stablecoin SyrupUSDC is now at a market cap of $780 million, making it the fastest-growing stablecoin this year.

Users deposit USDC onto the platform, which is then used to issue overcollateralized loans to institutional borrowers. The interest charged on those loans is resulting in above average APYs of about 10% today (6.4% base yield +3.5% Drip points), driving SyrupUSDC’s rapid growth.

You can also forgo points to snag a 9.2% PT fixed yield on Pendle instead.

About $587 million is used across DeFi, mainly 55% in Spark and 19% in Pendle.

Source: Dune.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flying_Tulip.png

Research

Flying Tulip's perpetual put option provides real principal protection, but investors must pay a valuation premium today for products that have to be built over the next 24 months. This structure works best as a stablecoin substitute where the put allows continuous monitoring—accept opportunity cost in exchange for asymmetric upside if the team executes on its ambitious cross-collateral architecture.

article-image

As flows consolidate and volatility fades, finding edge now means knowing which games are still worth playing

article-image

Value distribution came to $1.9 billion distributed in Q3, though total revenues have yet to beat 2021 heights

article-image

MegaETH public sale auction ends tomorrow, and the free money machine has attracted people who like free money

article-image

With tBTC under the hood, Acre abstracts bridging and converts non-BTC rewards to bitcoin

article-image

Accountable is also eyeing mid-November for mainnet launch

article-image

“Adjusted for size, I think it may be the most successful ETP launch of all time,” Bitwise CIO Matt Hougan says