Wallfacer Weekly (#6)

Hello again Wallfacers!

Here’s a roundup of everything that captured our attention this week.

Wallfacer Labs proposes launching Trinity on TrueFi

📰 Story: Earlier this week, we proposed launching Trinity, a protocol for borrowing against yield-bearing collateral on @TrueFiDAO. The protocol is designed to enable users to leverage yield-bearing assets, starting with TrueFi’s $tfBILL, to earn APYs of up to 15%. Users can also stake $TRI, the protocol’s native dollar-based token, to earn yields comparable to T-Bills. Trinity is currently deployed on the testnet, with plans to deploy on @base following a full audit and governance vote.
Trinity’s front end, as seen in our proposal.

💡 Our Take: Our experience in the #RWA space has highlighted the importance of simplicity, transferability, and strategic partnerships. These insights have been instrumental in developing Trinity, a protocol that is not only attractive to lenders but also brings us closer to fully leveraging #RWAs. In choosing Base, we seek to realize the full potential of RWAs and TrueFi, tapping into a #DeFi user base where participation is not gatekept by high fees. Keep an eye out for more updates as we navigate the governance process and work towards a full launch.

Tokenized US treasuries hit $1B

📰 Story: In last week’s newsletter, we covered the launch of @BlackRock's tokenized asset fund, which triggered a rally in valuations throughout the RWA sector. Only a week later, the total size of the onchain US treasury market has now hit $1B — propelled by the rapid growth of BlackRock’s $BUIDL token. @tomwanhh highlighted the token’s 400% rise in a single week in a post: https://t.co/FF00Riy0jQ
The total market cap of tokenized US treasures, as highlighted by @tomwanhh.

💡 Our Take: The entry of BlackRock into the tokenized asset market is a strong validation of its growing appeal in mainstream finance. Their impact goes beyond just numbers, creating a ripple effect that energizes the entire sector. As we gear up for Trinity's potential integration into TrueFi, we are encouraged by this validation of the market's readiness and excited about the prospects of introducing fresh innovations. Keep an eye out for our upcoming quarterly review, posted on our YouTube channel, where we delve into major developments in the RWA space.

Farcaster’s $DEGEN continues rally, highlighting evolution of meme coins

📰 Story: The $DEGEN token, launched in January as a meme coin, has maintained a striking upward trajectory, boasting an almost 200% price surge over the past week. This notable increase parallels a significant rise in user activity on @base, the L2 that hosts DEGEN. Leveraging its role as a popular tipping currency on Farcaster, and now laying the groundwork for its own L3, $DEGEN is showing that with strategic moves, meme coins have the capacity to shape emerging digital economies.
$DEGEN’s price chart, as seen on @coingecko.

💡 Our Take: It's fascinating to observe $DEGEN's strategic navigation of the recent surges in popularity of both Farcaster and Base. This demonstrates how meme coins can find their niche and satisfy market demands with well-timed positioning. In a blog post (https://t.co/jOI6wnZyld) published just yesterday, @VitalikButerin shared similar thoughts — outlining a trajectory where meme coins could end up serving more substantial purposes than mere entertainment. At the same time, he doesn’t discard the value of fun altogether. Watching $DEGEN’s growth, we see a glimpse of this future and the potential for these tokens to mature into meaningful contributors to DeFi ecosystems.

MakerDAO passes significant governance vote

📰 Story: In a significant governance vote, @MakerDAO has passed an executive proposal that enacts multiple impactful changes to its protocol. Most notably, Maker has approved a new $100 million Direct Deposit Module (D3M) line to lend $DAI against Ethena sUSDe via the Spark $DAI MetaMorpho vault. Additionally, the $Dai Savings Rate (DSR) has been reduced to 13% from the previous 15%, potentially affecting the strategies of protocols and $DAI holders alike.

💡 Our Take: Maker’s D3M to MetaMorpho creates even more upward pressure on stablecoin yields across DeFi. The high yield Maker earns via lending against sUSDe could enable Maker to sustain the DSR at high rates. Even though the DSR drops slightly to 13% via this vote, we don’t expect the DSR to continue to drop significantly. Stablecoin yields continue to be elevated across DeFi, as shown on @vaultsfyi. We recently added several new MetaMorpho vaults, including the Spark $DAI Morpho vault, to the platform.