Thread by @TheDeFinvestor

I spent dozens of hours looking for alpha on-chain last month 🔎

In this thread I'll share my top findings:

- fastest-growing protocols
- current trends & narratives
- latest smart money movements

Let's dive in🧵👇

Fastest-growing Protocols📈

1️⃣ @LybraFinanceLSD

$LBR has been killing it lately.

Lybra is the project behind eUSD, an interest-bearing stablecoin backed by LSDs. (stETH)

Its TVL increased from $16M to $160M in 3 weeks🤯

Anyone can borrow $eUSD against $stETH with 0 fees.

A fee is deducted from the stETH income that Lybra gets, and it's sent to $LBR stakers.

The reason for Lybra's explosive growth is its flywheel effect:

$ETH borrowers get $LBR incentives for minting $eUSD-> more revenue for $LBR holders -> higher $LBR price-> more $eUSD minted

2️⃣ @GNDProtocol

GND Protocol launched at the end of April, and in <2 months it reached $42M TVL.

It's the mother protocol of $gmUSD, a yield-bearing stablecoin on Arbitrum.

$gmUSD is backed by gmdUSDC & gDAI, and its holders collect most of the yield generated by these tokens.

Its 2nd product (GND Farm) manages concentrated liquidity on behalf of LPs and collects trading fees as revenue.

Most of the GND revenue from $gmUSD & GND Farm is used for buying & burning $GND from the market.

GND is already the top #4 #RealYield project on Arbitrum↓

3️⃣ @asymetrix_eth

Asymetrix is a protocol for asymmetric yield distribution from staking.

It launched a month ago & it reached $13M TVL extremely quickly.

Asymetrix is similar to a no-loss lottery🎰

The idea behind it is simple:

Users deposit $stETH, and every week a few
users are randomly selected to win the yield generated by all the stETH deposited on Asymetrix.

So you forego a stable staking yield for a chance to win a grand prize.

And no matter the outcome, all users earn $ASX staking rewards.

Trends & Narratives🔥

1️⃣ LSDfi

LSDfi continues to be the hottest DeFi narrative.

Frax's $frxETH & RocketPool's $RPL have seen the largest TVL increase among the top players.

Swell is the fastest-growing new protocol, but it doesn't seem to be very innovative.

Speaking about the LSDfi projects that are enabling new use cases for liquid staking derivatives, their TVL and fees are in up-only mode.

Lybra Finance is leading in terms of rapid growth, followed by @pendle_fi as seen in the chart below from the @defi_mochi Dune dashboard👇

2️⃣ Omnichain

The daily transfer volume of bridges has grown from less than $20M a few months ago to nearly $150M yesterday🤯

The main beneficiary is Stargate, a composable liquidity transport protocol powered by LayerZero.

LayerZero is an omnichain interoperability protocol.

The reason for the increase in the transfer volume might be the rumored LayerZero's airdrop.

Still, LayerZero tech is incredible, and it's already powering many cross-chain applications.

Here's a good thread about the top projects in its ecosystem:

https://twitter.com/wacy_time1/status/1645510559130079232

Smart Money Movements🐳

The most widely held token across the top 100 smart money addresses labeled by @ScopeProtocol seems to be $RDNR.

$RDNR (Render Token) has outperformed the market massively in the past months, and it's up 5x since January.

In short, @RenderToken is the leading provider of decentralized GPU based rendering solutions.

As $NVDA Stock price is up 170% in 2023, $RDNR has also benefited from this increase.

Moving on, VCs' public wallet addresses have been quiet in the past few weeks.

But overall, most of them seem to be bullish on the LSD narrative.

Some of the largest crypto VCs including Pantera Capital, Dragonfly Capital and Paradigm hold at least a token of a LSD protocol.

And that's it!

I hope you found some useful information here.

Based on your feedback, I might post new threads like this on a monthly basis.

If you like this thread, please leave a like and retweet the first tweet below👇

https://twitter.com/TheDeFinvestor/status/1663211641654202370