đ The Ethereum 3.0 vision
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Hereâs what Iâll cover today:
đ What is the Ethereum Economic Zone
đ Crypto chart of the week
đď¸ The latest DeFi news
đWhat is the Ethereum Economic Zone?
Itâs no secret that Ethereumâs Layer 2 scaling strategy has been a success.
7 out of the top 20 chains by TVL are Ethereum L2s, according to DeFiLlama. And their transaction fees are effectively negligible.
That said, L2s face a major problem:
Constantly moving assets between L2s to access certain dApps, ensuring you have ETH for gas across multiple networks, and liquidity fragmentation all contribute to a poor user experience.
Fortunately, a new proposal aims to fix these issues for good.
A few days ago, some Ethereum ecosystem builders proposed the Ethereum Economic Zone, which some people refer to as the âEthereum 3.0 visionâ.
What is the Ethereum Economic Zone?
In short, it is an ambitious attempt to unify Ethereum L2s.
Ethereum Economic Zone is an L1<>L2 framework.
Technically, L2s that adopt it will become synchronously composable with the L1. This will allow a smart contract on an L2 to call a smart contract on another L2 or on the Ethereum mainnet and receive a response within a single transaction.
In practice, this would make using multiple L2s feel like using a single blockchain.
To give you an example, letâs say you have USDC on Arbitrum and want to provide it as liquidity to a liquidity pool on Aerodrome, the main DEX built on Base.
Today, you'd need to manually bridge your USDC from Ethereum to Base first.
With the Ethereum Economic Zone (EEZ), you could deposit directly into Aerodrome in a single transaction. With no manual bridging required.
Who is building this?
Surprisingly, this initiative is not coming from the Ethereum Foundation.
The Ethereum Economic Zone framework has been proposed by Gnosis, an OG team building on Ethereum since 2015.
Gnosis built the constant product AMM model, CoW protocol, Safe, Gnosis Chain, and several other highly successful products and infrastructure projects.
While the Ethereum Foundation isnât directly involved in building the Ethereum Economic Zone, it is funding the team behind it, which gives credibility to the project and makes me think it actually has a good shot at succeeding.
What to expect next?
Over the next few weeks, the EEF team will publish a clear roadmap for existing Ethereum apps to leverage the Ethereum Economic Zone framework (EEZ).
Based on what's been shared, it looks like it will be an opt-in solution for DeFi protocols that want to expand to multiple L2s without fragmenting liquidity, rather than something that automatically applies to all Ethereum-based protocols.
It is unclear, though, when exactly this framework will fully go live.
But overall, I have to say I am very excited about this.
For years, the Ethereum community has been rightfully complaining that the current fragmented experience offered by Ethereum L2s is far from ideal.
Ethereum Economic Zone might finally unify L2s and abstract away bridging.
Together with Liquity
The sovereign dollar
Letâs be real:
Many projects claim to care about decentralization but arenât decentralized at all.
Liquity, an OG stablecoin protocol with $219M TVL, is an exception to the rule.
In short, this is what makes it different:
Immutable smart contracts - Liquity V2 cannot be changed or upgraded
Fully backed by ETH - Liquityâs BOLD stablecoin is overcollateralized and backed only by ETH and ETH liquid staking token holdings
No admin keys - The team canât access user funds even if they want to
On-chain privacy via Privacy Pools - BOLD holders can use Privacy Pools to anonymously transact on Ethereum in a compliant way
When you use Liquity, you have the guarantee that no humans can freeze your funds, and you canât get rugpulled as the protocol is immutable and fully on-chain.
On top of this, its stablecoin BOLD is offering some very interesting yields.
If you deposit BOLD in sBOLD or yBOLD, youâll earn an avg. APY of 8% generated in a sustainable way from interest rates and liquidation fees.
Opaque yield generation strategies and compromised admin keys have, unfortunately, led to billions in losses from other projects over the past few years.
Liquity is one of the few fully transparent and decentralized projects.
Discover what makes BOLD stand out here!
Chart of the week
Over 80% of crypto revenue is now generated by apps instead of infrastructure projects
Crypto meme of the weekđ
The latest developments in DeFi
Aave V4 went live on Ethereum
Hyperliquid launched Hyperliquid mobile app in a public testing phase
Pendle launched Pendle Skills and MCP, enabling AI agents to access Pendle
Lido DAO proposed a $20 million LDO token buyback
Gnosis announced the Ethereum Economic Zone - a project aiming to solve Ethereumâs liquidity fragmentation
iExec introduced the iExec Confidential Token - a mechanism that turns any token into a confidential, auditable asset
edgeX and Based released their tokens
Ondo introduced Ondo Perps - its own 24/7 equity perps futures product
Aerodrome and Velodrome will merge into a single DEX project called Aero
Sky launched a revamped website to access its 3.75% APY Sky savings rate
USDai released its airdrop claim portal (the token is not transferable yet)
Base revealed its 2026 roadmap, which includes bringing all major asset classes on-chain and supporting stablecoin gas fee payments
Chainlink SVR was adopted by AAVE on two L2s to capture MEV revenue
Midas, an on-chain investment products app, raised $50M in funding
Aster reduced its monthly token emissions by 97%
Drift Protocol has been exploited for $280 million
Google gave a 2029 transition deadline for making Bitcoin quantum-resistant
Thatâs all for this week!
Until next time,
The DeFi Investor
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