📢BeWater Weekly (11.18–11.24) | How Ethena + MakerDAO Construct the "LUNA Growth Spiral" for the New Cycle?By @Loki_Zeng How does Ethena-USDe achieve 50% monthly growth?In the past month, the total issuance of USDe increased from $2.40 billion to $3.80 billion, achieving an over 58% monthly growth. The underlying logic is that after BTC broke new highs, bullish sentiment surged, and the increase in funding rates raised the staking yield of USDe, leading to its growth. Although it has decreased slightly in recent days, the APY displayed on the Ethena official website on November 26 was around 25%.MakerDAO Becomes the "Unexpected Winner"Meanwhile, MakerDAO has become a hidden winner. Currently, Maker's daily income has grown by over 200% compared to one month ago, reaching a new high. This tremendous growth is closely related to Ethena. On one hand, the high staking APY of USDe has brought significant borrowing demand for sUSDe and PT assets, with the total scale of borrowing DAI using sUSDe and PT as collateral in Morpho being approximately $570 million, with a borrowing utilization rate exceeding 80% and a deposit APY of 12%. In the past month, the total loan amount issued by Maker's D3M module through Morpho exceeded $300 million. In addition to the direct path, the borrowing demand for sUSDe and PT has also raised the DAI utilization rate through other indirect channels, with Sparkfi's DAI deposit rate reaching 8.5%.Meanwhile, the balance sheet shows that Maker has issued a total of $2 billion in DAI loans to Morpho and Spark through the D3M module, accounting for nearly 40% of Maker's assets. These two items alone have generated $203 million in annualized fees for Maker, contributing approximately $550 thousand in daily income for MakerDAO, accounting for 54% of MakerDAO's total annualized fees.Ethena Has Become the Core of the DeFi Revival WaveThe growth path of USDe has now become very clear. The bullish sentiment from BTC's new highs has boosted funding rates, affecting the staking yield of USDe, while MakerDAO benefits from a complete and highly liquid funding chain and the "central bank attributes" brought by the D3M module, becoming the water supplier for USDe, with Morpho acting as a "lubricant" in this process. The three protocols form the core of growth, while peripheral protocols such as AAVE, Curve, and Pendle have also absorbed the benefits brought by USDe's growth to varying degrees. For example, AAVE's DAI borrowing utilization rate exceeds 50%, and the total amount of USDS deposits is close to $400 million; the USDe/ENA related trading pairs already occupy the second, fourth, and fifth positions in Curve's trading volume rankings, with Pendle’s liquidity ranking first and fifth. Curve, CVX, ENA, and MKR have also achieved over 50% monthly gains.Can the Growth Spiral Continue?In this growth spiral, almost every participant is a beneficiary. USDE's leveraged miners/lenders can achieve extremely high but volatile yields through leverage, DAI deposit users receive relatively high but stable yields, low-tier arbitrageurs earn spreads by staking Warp BTC, ETH LST to mint/borrow DAI, and high-tier players achieve excess returns through combinations of DeFi protocols, while protocols reap higher TVL, income, and token prices.The key to growth lies in whether the spread between USDe and DAI will always exist. Since DAI provides a relatively predictable monetary policy, the focus of this question lies with USDe, and the influencing factors include: ① Whether the bullish sentiment of the bull market can be sustained ② Whether Ethena can achieve higher APY distribution efficiency through improvements in its economic model and market share ③ Competition for the market from rivals (e.g., recent yield-generating stablecoin strategies launched by HTX and Binance)Will D3M Make DAI the Next LUNA?Accompanying the growth is the concern over D3M's safety. The fundamental characteristic of D3M is that it allows for the direct dynamic generation of DAI tokens without requiring traditional collateral from another token. Some viewpoints consider this as "unbacked printing." However, from the balance sheet perspective, the DAI minted by D3M is collateralized by sDAI. Compared to the traditional approach of first increasing assets and then liabilities, the Mint process of D3M occurs simultaneously. Additionally, considering that sDAI is eventually lent out as USDe, the collateral ultimately becomes a position of "over 110% LTV ratio of long and short synthetic assets."Based on this, D3M will not directly turn DAI into UST or a non-fully collateralized stablecoin, but it will indeed increase some risks:1. A high ratio of D3M modules could cause DAI to once again become a "shadow stablecoin," similar to how the PSM made it a "shadow USDC"2. Operational risks, contract risks, and custody risks of Ethena will be transmitted to DAI, and intermediaries like Morpho will further accumulate risks3. Lower the overall LTV of DAI🐟 Ecosystem Collaboration1. BeWater, as a community partner, supports the Taipei Blockchain Week, which will be held from December 12 to December 14, and registration is now open.2.The list of winners of the DMCC x Bybit Hackathon supported by BeWater has been announced, with 15 teams collectively winning $160,000 in prizes.3. The weekly hotspot review #22 of the Arweave/AO ecosystem will take place on November 26 at 21:00. This series of events is supported by BeWater and hosted by PermaDAO. This session's hotspots include: ao Ventures, Permaswap, AOX, Quantum, https://t.co/YdXU9vLjEM, Cyber beavers, and other ecosystem project trends.📊 Data Performance1. BTC has surpassed $99,000, with a market share reaching 61.44%.2. Since mid-October, USDe's market value has increased by $1.46 billion, second only to DAI.3. Kaiko: The weekly trading volume of altcoins has surged above $300 billion for the first time since 2021.4. https://t.co/IVvH2jHToQ has generated over $250 million in protocol revenue within 10 months, with daily active users exceeding 200,000 in the past week.5. The meme issuance platform Clanker on Farcaster earned $3.90 million in 15 days, with a trading volume of $367 million.6. The TON ecosystem prediction platform TonaMarket has surpassed 50,000 users in three weeks.7. Binance's stablecoin inflow in the past month reached $10.20 billion, setting a new historical record.📰 Key News1. Coinbase will delist and suspend wBTC trading on December 19.2. ZKsync and Polygon support proposals for the Ethereum consensus layer Beam Chain reform.3. Ryze Labs has partnered with ai16zdao to launch AICombinator and establish a $5 million fund.4. ai16z: DAO partners have decided that ai16z and AI Combinator will be fully separated.5. The AI project ORA token will have its initial issuance on Ethereum Uniswap.6. Financial services company Cantor Fitzgerald has agreed to acquire a 5% stake in Tether for $600 million.7. The meme coin issuance platform on Aptos, https://t.co/zC8laIvddw, has launched its mainnet.8. Suilend has announced its tokenomics: SEND total supply of 100 million tokens, with 40% allocated for Mdrop airdrop.9. The crypto entertainment platform Monkey Tilt has completed $30 million in Series A funding, led by Pantera Capital.10. DCG has established a new subsidiary, Yuma, to support and promote the development of Bittensor.📚 Recommended Articles1. A conversation with Vitalik Buterin: The world should not fall into the power kingdom of AI.https://t.co/FrNTQbG5kq2. The Kingdom of Code: A brief history of "Code is Law".https://t.co/uHamQ734Xi3. The $15 billion conspiracy: Where will MicroStrategy send Bitcoin?https://t.co/Zz7VG6ssVjRead more👇https://t.co/gGzDycu6kQ
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