đShould you pay attention to MegaETH?
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Aurion is building the liquidity hub of MegaETH. Check it out here.
GM friends.
Hereâs what Iâll cover today:
đAll you need to know about MegaETH
đ Crypto chart of the week
đď¸ The latest DeFi news
đAll you need to know about MegaETH
MegaETH, one of the most anticipated Ethereum L2 blockchains, is finally here.
Iâve spent a few hours exploring its ecosystem and thought it would be interesting to highlight the most interesting dApps Iâve found.
But first of all, letâs start by addressing the elephant in the room:
Why do we need another L2, and what makes MegaETH unique?
The short answer is that, for most dApps, the chains we have are good enough.
That said, MegaETH is taking blockchain performance to another level.
During its recent stress test that lasted a few days, MegaETH processed 10.7B transactions, more than Ethereum L1 has processed in its entire history!
According to its team, it can process 100k TPS with sub-millisecond latency.
So itâs probably the most scalable chain in crypto right now. This level of scalability is not needed for most dApps, but for certain apps, such as orderbook-based DEXs or web3 games, a high network speed is essential to deliver a good UX.
Besides its high performance, there are some other things that set it apart:
Native stablecoin - MegaETH launched its own native stablecoin USDM, which is backed mainly by assets invested in BlackRock's tokenized U.S. Treasury fund
The interesting thing is that all the revenue generated by USDM will go towards MEGA token buybacks after MegaETH launches a token.
MegaMafia - MegaMafia is an accelerator that supports early-stage founders building new dApps on MegaETH
Now, there are a lot of different accelerators in web3. Whatâs interesting about this one is that MegaETH managed to attract, through MegaMafia, several teams building truly innovative products. (a few which Iâll cover a bit later in this article)
KPI-based rewards - The MegaETH token will have an unlock schedule that will be based on the ecosystem achievements
Until a certain ecosystem growth, performance, or decentralization goal is hit, most tokens wonât enter circulation. The goal is to address the low float high FDV issue.
Iâm not sure how efficient this is, but I like to see more tokenomics experimentation.
And thatâs basically it. Overall, itâs safe to say that MegaETH is not just another fork, as it is bringing some new mechanisms to the market.
What can you do on MegaETH right now?
Well⌠to be frank, less than I expected.
That said, there are a lot of interesting dApps building on MegaETH that will be deployed in the near future.
To get started today, you should visit RabbitHole (here).
This is basically a prompt-based interface for the MegaETH ecosystem.
You can ask any questions related to MegaETH, including where you can earn yield, what unique dApps are built on MegaETH, how to bridge, etc.
Itâs an interesting idea to build a chatbot for MegaETH-related questions.
Speaking about dApps, here are a few that are already live and caught my attention:
Avon - A new kind of lending protocol that lets lenders and borrowers set custom borrowing rates and terms - I personally deposited some USDm in Avon MegaVault as early depositors get a 3x points boost this week
Aave - The largest DeFi money market needs no introduction. I like that Aave was deployed on MegaETH, as I think that there might be some juicy MEGA token incentives for the Aave users on MegaETH in the future
Huntertale - a GameFi project native to MegaETH that reminds me of DeFi Kingdoms (I am generally not a big fan of GameFi, but this one seems interesting)
Prism - an AMM native to MegaETH that will soon also offer prediction markets, lending, and perps products
As I said, there are also a lot of interesting dApps yet to go live:
Aurion - An advanced DEX + prediction markets platform with gamified mechanisms built natively on MegaETH
Supernova - A CLOB-based rates exchange for trading or hedging interest rates, FX, and crypto cross-rates that will also offer fixed-rate and term borrowing
Blackhaven - A reserve-backed treasury, the so-called OlympusDAO of MegaETH
Premarket - A platform for trading premarket options for TGEs, IPOs, RWAs, and other assets before they officially launch
If you want to see a full list, I suggest checking out this page.
To sum it up, I think itâs worth keeping an eye on MegaETH.
Rumors are spreading that it will launch an incentive program soon (itâs not confirmed yet, though), which could create great opportunities for DeFi farmers.
But I think MegaETHâs success depends on whether any innovative dApps built on it manage to gain massive traction and attract external capital from other chains.
Together with Aurion
The Liquidity Hub of MegaETH
MegaETH is pushing the limits of on-chain trading with its insanely high speed.
But speed means nothing without deep, efficient liquidity.
This is where Aurion comes in - an upcoming high-performance AMM built natively for MegaETH and powered by Algebra.
A few things you should know about it:
Aurion combines concentrated liquidity with ultra-low-latency execution to offer a great experience for both traders and liquidity providers
It will offer multiple pool types, including CLMM, stableswap, and volatile pools tailored for different needs
Automated liquidity management will be available for liquidity providers to minimize losses and maximize returns
But perhaps the most interesting thing about it is that Aurion will also soon launch a built-in prediction market with gamified mechanisms.
By combining capital-efficient trading with on-chain prediction markets, Aurion aims to become MegaETHâs DeFi hub.
If you are exploring the MegaETH ecosystem, itâs worth checking it out.
Chart of the week
ETH staking ratio surged past 30% for the first time
Crypto meme of the weekđ
The latest developments in DeFi
MegaETH launched its public mainnet
Aave went live on Mantle with a new MNT incentive program
Polymarket filed trademark application for POLY ticker
Sui launched suiUSDe, a native stablecoin for Sui backed by Ethena
LayerZero introduced Zero, its own blockchain targeting 2 million TPS
BlackRock bought $UNI and listed its BUIDL fund for trading on Uniswap
Citrea announced the Citrea Mainnet Campaign - a campaign tracking the activity of the early users of its ecosystem dApps
Ondo enabled the use of tokenized stocks as collateral on lending markets
Lighter introduced Funding Rate Rebates for perps traders who stake LIT. Funding rate rebates are also available for traders in the Premium fee tier
USDai announced its ICO on Coinlist and its upcoming TGE in March
Robinhood launched Robinhood Chain public testnet, which is powered by Arbitrum
Coinbase introduced Agentic Wallets - its first-ever wallet infrastructure built for autonomous AI agents
Kamino announced it will support borrowing against off-chain collateral
Kaito AI partnered with Polymarket to roll out attention markets
Royco introduced tranched yield vaults that split yield sources from any DeFi vaults into two pools: Senior and Junior
Backpack allocated 25% of its upcoming token supply for airdrop at TGE
Sushiswap went live on Solana
Thatâs all for this week!
Until next time,
The DeFi Investor
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