Entropy Advisors

We are excited to unveil v0 of @Arbitrum Analytics, starting with the DAO's $100M AUM Treasury Management Program. Since its launch, it has generated +$2M in interest through 4 key deployments: • RWAs • ETH • Stablecoins • ARB To learn more, check out the link below 👇

Good to see the Ethereum Foundation further exploring DeFi within DeFi. Arbitrum DAO has been doing this for a while. A $100M AUM portfolio already deployed across RWAs, ETH and stablecoins on: • @aave • @0xfluid • @morpho • @gmx_io • @sparkdotfi • @lido • @ether_fi

The Euro stablecoin market recently hit a new ATH at $730M. Tether's EURT exit under MiCA regulation cut the market in half in 2023/2024. Circle stepped into the gap with EURC, and now leads with 61% market share. The number two spot is held by EURCV, issued by a top-tier TradFi bank, Societe Generale at $71M. MiCA is consolidating the Euro stablecoin market around compliant issuers with real distribution. With the structural tailwinds in place, $1B market cap by end of year could be possible.

Over $4.5M has been distributed back to 17K+ @variational_io users via Loss Refunds. Additionally, total Referral Rewards have crossed $2M with 5K+ claimants. That's $6.5M+ revenue returned to their users! Variational's points program is now live and will conclude by Q3 2026.

Data: dune.com/entropy_adviso…

Once a $638M market, @aave Horizon has now slipped slightly below $400M in size. Early growth was driven by @SuperstateInc's USCC, but its market size has since declined sharply from $286M to $120M. A modest rotation is emerging, with Janus Henderson's JAAA now reaching $24M market size. @Ripple's RLUSD has remained the primary borrowed stablecoin against the RWA collateral set.

Open interest on @OstiumLabs has almost continually stayed above $200M since the start of the year, with commodities now making up ~2/3 of daily OI. Flow has shifted decisively away from crypto and into traditional markets, with FX, indices, and equities now dominating activity.

As a leading incentive-design provider, we require the best data, so we built an in-depth dashboard on Merkl-run campaigns Churn = Users who never made another transaction after claiming tokens via Merkl Arbitrum: 10% Ethereum: 11.2% Plasma: 16.9% Base: 51% WorldChain: 96%

Ethena is proposing to lend to Maple Institutional. Maple Institutional depositors should be watching. The spread between Maple Institutional and syrupUSDC has compressed from 2.7% to ~0.7% in the past year. More capital deploying to the same book could compress yields further.

@clJoseph_ @emmettgallic @StaniKulechov @Kairos_Res @gattacahq Gattaca

@emmettgallic @StaniKulechov @Kairos_Res Or, @gattacahq x.com/gattacahq?s=21

Earlier today, a user attempted to buy AAVE using $50M USDT through the Aave interface. Given the unusually large size of the single order, the Aave interface, like most trading interfaces, warned the user about extraordinary slippage and required confirmation via a checkbox. The user confirmed the warning on their mobile device and proceeded with the swap, accepting the high slippage, which ultimately resulted in receiving only 324 AAVE in return. The transaction could not be moved forward without the user explicitly accepting the risk through the confirmation checkbox. The CoW Swap routers functioned as intended, and the integration followed standard industry practices. However, while the user was able to proceed with the swap, the final outcome was clearly far from optimal. Events like this do occur in DeFi, but the scale of this transaction was significantly larger than what is typically seen in the space. We sympathize with the user and will try to make a contact with the user and we will return $600K in fees collected from the transaction. The key takeaway is that while DeFi should remain open and permissionless, allowing users to perform transactions freely, there are additional guardrails the industry can build to better protect users. Our team will be investigating ways to improve these safeguards going forward.

EdgeX has the 2nd-highest perp volume in the past 24h (behind Hyperliquid), and they’re set to launch Edge Chain soon using the @arbitrum Orbit Stack. Users can trade perps (crypto, pre-TGE, commodities, stocks), spot, and prediction markets (powered by @Polymarket) on EdgeX.

The USDC supply rate on Aave Ethereum is at a 3-year low of 1.7% APY. For higher stablecoin yield, you can always check out @pendle_fi. sUSDai PTs are currently sitting at 8.23% APY on @Arbitrum. Nearly 5x the rate.

In light of recent market volatility, @boros_fi 30D Skew % hasn't been positive since late Jan and continues to trend lower. Skew % is the imbalance between long vs short taker volume. Short dominance typically means: - Hedging yield exposure - Speculation on more rate decline

Source: arbdata.com

~$10B sits across the top 10 DAO treasuries, but most of it is held in volatile assets and, notably, in native tokens. During market downturns, the aforementioned leads to runway deterioration and budgets get squeezed. The Arbitrum DAO has been diversifying its treasury into stables and RWAs since Q4 2024, and the actively managed portfolio currently stands at $90M So far, the program has generated $2.6M in interest. Even with US Treasury and DeFi rates coming down, the portfolio is still yielding 3.7%