Written by: Zuo Ye
Ethereum returns with DeFi again, with Aave/Pendle/Ethena turning circular loans into leverage amplifiers. Compared to the on-chain stack based on ETH during DeFi Summer, the leverage rise curve supported by stablecoins like USDe is more gradual.
We might be entering a warm long cycle, and the examination of on-chain protocols will be divided into two parts: first, involving more asset types, with external fund liquidity being more abundant under the Federal Reserve's rate cut expectations; second, exploring the limit of leverage multiples, corresponding to the safe deleveraging process, i.e., how individuals can safely exit, and how the bull market will end.
Six Crypto Protocols: Ecosystem and Token Interaction
On-chain protocols and assets are numerous, but under the 80/20 rule, we only need to focus on parameters like TVL/trading volume/token price. More specifically, focus on the least number of individuals essential to the on-chain ecosystem, and then examine their relationships in the ecosystem network, considering individual importance, ecosystem connectivity, and the highest growth potential of new protocols.
[The rest of the translation continues in the same manner, maintaining the specified translations for specific terms like DeFi, Aave, Pendle, etc.]Aave has become the de facto lending infrastructure, closely tied to Ethereum
Bitcoin and Ethereum represent the limits of the blockchain economic system, and their expansion is the basis for DeFi growth, which means how much of BTC's scale can be migrated to DeFi and how much room for growth DeFi still has
Hyperliquid/HyperEVM is already closely integrated with existing DeFi giants. Although its TVL is far behind Solana, its growth prospects are larger. Solana's story is about defeating the EVM system from a public chain perspective
Conclusion
The crypto six protocols examine the degree of interconnection between each other. This does not mean that other protocols lack value, but that high collaborative closeness will exponentially improve fund freedom and utilization, thereby benefiting all parties.
Of course, a loss for one will be a loss for all, which requires examining the subsequent development of DeFi anchor switching—from ETH to YBS. As a high-value asset, ETH is more aggressive in leverage, while YBS like USDe is naturally more price-stable (not value-stable), and the DeFi Lego built on it is more solid. Except in extreme de-anchoring situations, it can theoretically make the leverage and deleveraging curves more moderate.
Seats in the crypto pantheon are limited. New chosen ones can only forge ahead, make connections with existing deities, and build the strongest protocol network to earn their place.
