Andrew Huang ⚡️⛓️

Asset rehypothecation (a la blast / vault bridge) is an underrated growth loop for the ethereum ecosystem

You increase the effective money supply, similar to fractional reserve

This is bullish for rollups AND l1 defi

Long live L1 defi and rollups

Polygon quietly putting together some interesting lego pieces:
- AggLayer for interoperability
- CDK-opgeth for a battle-tested rollup stack
- VaultBridge for generating yield on rollup TVL

The two major wins from this last cycle Hyperliquid and Ethena core mechanics were not driven by composability

Hyperliquid is its own isolated perp dex

Ethena's yield is from offchain basis trades

Now that they have distribution, they're adding *back* composability. Hyperliquid with its own EVM L1, and Ethena with Converge network

Interestingly both sourced their initial liquidity from the Ethereum ecosystem. Hyperliquid from Arbitrum One and Ethena on mainnet