Entropy Advisors

RWAs on Arbitrum is not just about tokenized US/EU Treasuries and Equities, but also Real Estate by @EstateProtocol, which currently has $4M TVL. By tokenizing properties, investors around the globe can own a fraction of the real-estate starting with $50 USDC per token. Check out our Arbitrum RWA Dashboard to learn more: https://lnkd.in/ee8X_Kby

After the adoption of tokenized US Treasuries, Euro Money Market Fund is also expanding on Arbitrum by Spiko, currently accounting for 11% ($14.8M) of the total tokenized value on Arbitrum. Up next, tokenized equities? ?? Data from our Arbitrum RWA Dashboard https://lnkd.in/ee8X_Kby

?? Ethena is now a top 5 DeFi protocol by TVL, generating $300M+ in revenue—a major milestone in the space. With this success, Wintermute has proposed activating a Fee Switch, which would allow ENA stakers to share in Ethena’s earnings. But what does this mean for the protocol and its community? We broke down the key insights using two new dashboards. ?? ?? Why a Fee Switch? Currently, 824M ENA ($324M) are staked, representing 5.5% of supply. However, stakers don’t receive direct exposure to protocol revenue—only rewards from partnerships and unclaimed airdrops. Aligning incentives with ENA holders strengthens governance and long-term protocol sustainability. ?? How does Ethena generate revenue? Ethena earns revenue from tokenized basis trading, distributing 100% of earnings to USDe stakers and the reserve fund. Over the past 3 months, it has averaged $50M in monthly revenue. ?? When will the Fee Switch be activated? The Ethena Risk Committee has set five key criteria across Success Metrics and Risk Metrics. The Fee Switch will only activate when all conditions are met: ? $250M+ Cumulative Revenue (Currently $330M) ? Reserve Fund ≥ 1% of USDe Supply ($61M Fund) ? 6B USDe Supply (Currently 9% below target) ? Integration with Binance/OKX (Progressing, Binance now holds 4M USDe) ? sUSDe vs sUSDS APY Spread ≥ 5% (Expected to recover with market momentum) ?? What’s next? The Fee Switch proposal is a major step toward making Ethena a sustainable, community-driven protocol. Meanwhile, we continue tracking key metrics, including ENA price, staking ratio, USDe liquidity, revenue, and valuation trends.

?? Ethena is now a top 5 DeFi protocol by TVL, generating $300M+ in revenue—a major milestone in the space. With this success, Wintermute has proposed activating a Fee Switch, which would allow ENA stakers to share in Ethena’s earnings. But what does this mean for the protocol and its community? We broke down the key insights using two new dashboards. ?? ?? Why a Fee Switch? Currently, 824M ENA ($324M) are staked, representing 5.5% of supply. However, stakers don’t receive direct exposure to protocol revenue—only rewards from partnerships and unclaimed airdrops. Aligning incentives with ENA holders strengthens governance and long-term protocol sustainability. ?? How does Ethena generate revenue? Ethena earns revenue from tokenized basis trading, distributing 100% of earnings to USDe stakers and the reserve fund. Over the past 3 months, it has averaged $50M in monthly revenue. ?? When will the Fee Switch be activated? The Ethena Risk Committee has set five key criteria across Success Metrics and Risk Metrics. The Fee Switch will only activate when all conditions are met: ? $250M+ Cumulative Revenue (Currently $330M) ? Reserve Fund ≥ 1% of USDe Supply ($61M Fund) ? 6B USDe Supply (Currently 9% below target) ? Integration with Binance/OKX (Progressing, Binance now holds 4M USDe) ? sUSDe vs sUSDS APY Spread ≥ 5% (Expected to recover with market momentum) ?? What’s next? The Fee Switch proposal is a major step toward making Ethena a sustainable, community-driven protocol. Meanwhile, we continue tracking key metrics, including ENA price, staking ratio, USDe liquidity, revenue, and valuation trends.

Over 10 initiatives, totaling $270M (548M ARB) in funding, have been allocated by the @arbitrum DAO. What is so special is that the entire community collaborates to shape Arbitrum's future, spanning areas like gaming, treasury management, grants, incubation, and partnerships.

In February, Arbitrum protocols generated over $6.8 million in revenue. 45% ($3M) came from derivative protocols, surpassing DEXs, which accounted for only 18% ($1.2M) of the total revenue. GMX Arbitrum protocols, earning nearly $2M in revenue. Uniswap ranked second, with revenue at slightly less than $800k, less than half of GMX's.

Arbitrum has been expanding its adoption of RWAs alongside Ethereum, reaching $100M in AUM. With the upcoming STEP 2.0, more institutional players are expected to join Arbitrum. Under STEP 1.0, the Arbitrum DAO has invested in: - Blackrock's BUIDL - Ondo Finance's USDY - OpenEden's TBILL, and more.

BUIDL by BlackRock and Securitize have reached $11M in AUM on Arbitrum, becoming the second-largest tokenized asset on the network. This increase is due to the $9M from the Stable Treasury Endowment Program (STEP) that migrated its holdings from Ethereum to Arbitrum.

Amidst market volatility, Uniswap v4 on Arbitrum has hit new peaks on 25 Feb - $20M in Volume - $15M in Liquidity

Congratulations to the Spiko team on hitting $10M AUM with their Tokenized EU and US Treasuries on Arbitrum! RWArbitrum continues to grow. ??