There have been a number of questions recently around XPL rewards on Plasma One, and we want to address them directly. XPL rewards distributed through Plasma One are not new emissions. XPL used for rewards have been purchased by the Foundation treasury and that will continue for future Plasma One rewards. More broadly, we’re fully committed to building Plasma around XPL and always have been. The development company is majority owned by the Foundation, and the entire team is directly aligned with the long-term success of XPL and nothing else. As Plasma One is currently in beta, these rewards represent a de minimis amount of total spend. As we scale up Plasma One, we are partnering with the best in the space to provide the most sustainable and robust rewards and earn products to our users. We are committed to a single asset framework and to ensuring that the team, investors, and community are aligned around that direction over the long term. As Plasma One wins, so too does XPL. More details on XPL's role across our product strategy is coming soon.

Today is a difficult day for Defi. We’re actively working with partners across the space to support the best possible outcome for users, not just on Plasma. Plasma Aave markets have no exposure to rsETH. User funds are not at risk from the rsETH exploit, both on Plasma's Aave instance and on Plasma One. USDT markets on Aave are currently at max utilization, so withdrawals are temporarily unavailable until more lenders provide liquidity or borrowers delever. There is no bad debt, and all deposits remain fully collateralized on Plasma.

Out of an abundance of caution, Plasma has also paused our LayerZero bridges for XPL while the rsETH incident is being investigated. There has been no exposure to XPL, on any chain, via this incident.

Earlier this week, @stables_money announced that it would be sunsetting its consumer app. We've been working closely with the Stables team to ensure their users have a new home, Plasma One. Welcome home.

DROPS E34: @Plasma - Stablecoins Will Outgrow Crypto @SplitCapital is Chief Strategy Officer at Plasma. Nine years across the full stack - buy side research, DeFi, centralized exchanges becoming multi-hundred billion dollar businesses - and now CSO at the stablecoin neobank he was backing before he joined. We cover why stablecoins are the only crypto vertical set to outgrow crypto, what's actually broken about every wallet people use today, and what a 90% token drawdown means when you're still in beta. We talk about: - Why nobody owns stablecoin customer distribution today - Why stablecoins are the only vertical bigger than crypto itself - Plasma One - making stablecoin spending feel like Revolut or Venmo - Getting card fees 50-80% cheaper than anything that exists - The shift from tech-first narrative to outcome-first product - Exchange dominance never lasts - from BitMEX to Binance to FTX to whatever's next - Staying under 50 people and why over-hiring kills companies And much more… Timestamps: 0:00 - Introduction 1:43 - Who are you? 2:53 - 9 years of experience 5:33 - Patience in a Bear Market 8:29 - What people get wrong about Crypto? 12:42 - Relation between Plasma & Zaheer 14:36 - Right time to Build 16:46 - Explaining Plasma 18:43 - Focus of Plasma 20:41 - From Tech-First to Revenue-First 22:49 - How does Plasma make money? 24:09 - What is Plasma One? 24:53 - How Plasma is 10x Cheaper, Faster and Better? 27:52 - Fixing broken Crypto UX 29:02 - The Fees Game 31:30 - Hiring in Plasma 33:43 - Ultimate KPI for Plasma 34:37 - Who's a user? 35:44 - Way Forward for XPL