The @keyrock vault went from earning through @Morpho to 99% utilization in the latest @3f_xyz auction. Once the bridge facilitation period ends, the capital automatically returns to Morpho. Capital moving where it’s needed, then getting straight back to work.

Another day, another @3f_xyz BF auction $2.4m of @Bitwise USCC subscription demand hit this morning for 3F BFs. Users are demanding leverage on the USCC fund as crypto basis has been coming back With a total of 45 auctions so far, here's some interesting BF data so far: - $16.3m total BF requested - Volume-weighted blended rate: 2.5 bps/day = 9.06% APR for a T+1 bridge facility - APR range 3.65%-10.58% 9% average APR for lending USDC overnight is quite competitive by any fixed-income standard

Anyone who's tried to loop RWAs knows it's hard because of settlement delays Deleveraging a looped RWA position: N loops × T-day settlement = N×T days of unwinding 3F uses the BF mechanic which shortens redemptions from N*T days to T days Yesterday's 3F BF auction was awesome bc RWA enjoyooors got to experience just this for the @paretocredit FalconX private credit vault, which has monthly redemptions

Great op-ed from @mfisher10x in CoinDesk on one of the biggest problems holding RWAs back. And a very kind shoutout to @3f_xyz for working on it. The problem isn’t tokenization. It's liquidity. "I worked on bringing Apollo's ACRED onchain as collateral on Polygon PoS, alongside Securitize, Gauntlet and a Morpho-powered vault. It worked, to an extent. Some looped it, and it proved the thing could be done at all. It also proved what still had to be solved before institutional flows would follow — chiefly on-demand liquidity for atomic redemption. Redemptions on a fund like that come quarterly. Loop it 4x, and unwinding completely can take a year. The redemption path simply didn't make sense, and that isn't a smart contract problem or a demand problem. It's a duration mismatch between an instrument built for quarterly liquidity and a market that clears in seconds. That's the actual reason RWA utilization is low, and it's nowhere in the debate. It's also what newer entrants appear to be solving. Protocols like 3F, built on Morpho on the Ethereum mainnet, replace sequential looping with an onchain auction in which specialists front the full capital for the target leverage in one shot. Twenty settlement cycles collapse into one."

Bull market is activating some very attractive yield opportunities on 3F Bringing programatic yield, only for the most trusted brands DMs open for private beta @SuperstateInc @Bitwise @centrifuge @JHIAdvisors @paretocredit @FalconXGlobal

This will be a major upgrade for the looper UX once @3f_xyz comes out of private beta (currently $29M). Leveraged yield strategies that settle asynchronously for investments that normally require more red tape, more delays, and more coordination to build leverage. Loop RWA funds, tokenized treasuries, private credit. 3F gives you one-click access onchain to coordinated bridge loans and position management. Max yield, powered by Ethereum. @centrifuge JAAA with max 10x leverage = 18.38% APY

This proposal misses what the incremental ETH buyers (TradFi) actually want, while creating infighting among Ethereum’s long-term supporters (DeFi). It’s not clear to me who it’s supposed to serve. TradFi wants: - Yield: even inflationary yield. ETF issuers are increasingly excited about passing staking yield to holders - Revenue: Ethereum needs a clear line of sight to sustainable monetization - The real issue: incremental users/liquidity have been going to Base and Robinhood Chain, not mainnet. Better to focus on growth (driving mainnet onboarding and usage, or monetizing L2s) than on austerity DeFi cares about: - Native ETH yield, which makes up a real chunk of some app revenues. Killing it overnight alienates builders and long-term supporters - Credible neutrality: OGs are ideologues on this, and issuance being changeable by a few individuals undermines it

Levered carry on private credit is the largest borrow use case on Morpho outside prime markets. For instance, @3f_xyz's 6.5x leverage vault on @FalconXGlobal's @paretocredit vault has been yielding ~20% APY. Leverage is drawn from the wFalconX market on Morpho, which has become a top 20 collateral on Ethereum in less than 2 months

Hot take: Tokenized asset issuers shouldn't bake liquidity sleeves into the asset. It just erodes native yield and makes the asset less attractive. If the underwriting is sound and the risk/reward is compelling, liquidity will form around the asset on its own. Let composability do the work.

Personally find this view of the 10x @centrifuge $JAAA carry trade on @3f_xyz incredibly satisfying Daily fund NAV updates pushing performance up against real-time borrow cost charged on @Morpho - the result is a jagged mountain range of live carry, drawn block by block RWAs are hard to integrate in DeFi, but composability is here, happening before our eyes Thank you to the private beta participants of 3F so far

Browse through @merkl_xyz and all you see are stablecoin-based incentives everywhere Competition is rising amongst every stablecoin, lending protocol and fintech The question is when the incentives run out, who will have found true PMF?