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Kamino, Morpho, Aave, Gearbox, Aries & Spark.

• Kamino Finance revolutionizes DeFi by integrating lending, liquidity provision, and leverage. It offers one-click, auto-compounding liquidity strategies, lets users use concentrated liquidity as collateral, and build automated strategies. In the past 90 days, users have borrowed $2.7B and repaid about $2.2B. Since late May, borrowing has surged 40%, rising from $1.9B to over $2.7B in two weeks.

• $SOL is the most popular choice for borrowing among users, making up a significant portion, 25.2%, of the total loan volume. JitoSOL and JupSOL are close behind, capturing 22.1% and 17% of the market share, respectively. JupSOL's achievement is particularly impressive considering it reached this volume in just 10 days.

Over the last 90 days, Kamino has seen a significant presence of 50.6 thousand active borrowers. However, there's been a noticeable decline in both borrower numbers and loan uptake. For instance, daily active users have plummeted from approximately 4,000 to just 500.

• 💦🔬 Tx-Level Alpha: To analyze borrow/lending data on Kamino, we must delve into the specified contract. Within this contract, we focus on the action named "Borrow obligation liquidity." For example, we can examine this transaction where a user borrows $1,300 USDC, facilitating a comprehensive review of borrower details, lender information, the involved asset, and other relevant factors.

• Morpho is a decentralized lending protocol on EVM blockchains. It is composed of several products. Between 2022 and 2023, Morpho launched Optimizers focused on improving borrowing and supplying rates of underlying protocols (Compound V2, Aave V2 and Aave V3) by matching users in peer-to-peer. In January 2024, Morpho unveiled Blue, a new primitive to allow more efficient lending and permissionless market creation. This new protocol grew intensely and recently reached $1B+ total value locked and $1.6B+ total deposit.

• Boosted by its partnership with Spark, who is currently deploying $500M DAI on markets backed by Ethena's token USDe and sUSDe, Morpho Blue flipped Morpho Optimizers in total deposit, total value locked and total borrow.

• Metamorpho is another protocol implemented for permissionless risk curation on top of Blue. Many risks managers currently implement vaults including well-known companies such as Steakhouse, Gauntlet. These vaults have also experienced significant growth, now accounting for $100M+ WETH supply and $60M+ USDC supply.

• 💦🔬 Tx-Level Alpha: Morpho is deploying on Base, the first L2 deployment for the protocol. It will launch mid June and many risk curators such as Moonwell announced implementing a Metamorpho Vault on Base.

• Aave's TVL started trending upward in late 2023, and 2024 has been a remarkable year for the protocol. TVL has surged from approximately $6.7B to over $13B. The three largest components of this TVL in terms of tokens are WSETH, WBTC, and WEETH. When broken down by chain, Ethereum constitutes the majority, with Arbitrum, Polygon, and a long tail of other chains contributing to the rest. This impressive growth highlights Aave's increasing adoption and strong position in the DeFi landscape.

• Since the start of the year, the protocol's daily revenue has risen from about $600K to over $1M, mirroring the TVL uptrend. Total fees collected this year have reached $160M, showcasing consistent growth. This upward trajectory highlights the protocol's strong performance and increasing adoption.

• In addition to its lending market, Aave's stablecoin GHO has seen impressive growth since early 2024, with supply increasing from 34M to 63M. However, swap activity is declining, and only around 800 wallets hold more than 2500 GHO. This indicates strong issuance but a need for broader adoption.

• 💦🔬 Tx-Level Alpha: This transaction exemplifies an Aave flash loan, allowing users to borrow and repay within the same transaction, enabling the borrowing of large amounts. Here, a wallet borrows USDC and swaps it for other stablecoins. The user switches collateral in Aave from DAI to USDC. Many similar transactions earn arbitrage profits, leveraging access to substantial funds without upfront collateral.

• Gearbox Protocol turns DeFi activities leveraged by enabling users to borrow up to 10X of their collateral. Borrowers in turn pay interest rates to lenders and generate supply yield. The protocol uses Credit Accounts to create programable restrictions on borrows & utilisation to ensure lent funds are always paid back. Addition of leveraged airdrop farming propelled average supply rates for ETH to 15.2% and for USDC to 21.2% over the last 90 days.

• Increased rates have led to more lending inflows. The incoming supply, though, also gets borrowed at 15%+ APYs by leveraged points farmers. This enables Gearbox to scale with higher rates despite growing size. Creating a positive growth loop & 12Xing supplies. 

• 4 new pools, 4X lenders. The lending pools are on-course to generate over $12M annualised in interest for lenders. This yield opportunity has led to the number of lenders increasing from 450 in march to 1,806 today. 4 new pools also enabled broader network effects and tapped into more lenders, gaining $40M in TVL.

• 💦🔬 Tx-Level Alpha: The transaction isn't just 1 but 115th in a list of liquidations that occurred when ezETH depegged. This led to $32M+ of liquidations in a span of 3 hours. Gearbox was able to liquidate $32M onchain and the event generated $600K+ in fees (which was reimbursed). At the same time, 0 bad debt occurred, keeping lenders safe. Security and risk are Gearbox's biggest priorities with 37% of spends going towards keeping the protocol safe. The event helped stress test the current protocol and generated data to improve safety further.

• Aries Markets is the largest lending platform and No.1 dApp on Aptos, holding a TVL of $250M, nearly 50% of the ecosystem's total. It exceeds the second-ranked dApp by over $100M. The introduction of E-mode for APT assets allows LTV ratios up to 90%. With over $100M borrowed, Aries Markets plays a crucial role in boosting capital efficiency in the Aptos ecosystem.

• The number of transactions on Aries has grown significantly, exceeding 10M. This substantial increase underscores the platform's expanding user engagement and operational scale.

• USDC and USDT are the principal assets borrowed on Aries, with the amount of USDC borrowed reaching $100M. This highlights the prominent role of these stablecoins in the borrowing activities on the platform.

• Since its launch, Spark has received meteoric growth. Currently Spark's Total Value Locked (TVL) stands at $4.82B in assets, $1.61B in borrowed assets with $3.2B in available liquidity for both lenders and borrowers. As a whole, Spark has strengthened the MakerDAO and DeFi ecosystem at large.

• Following the creation of the Spark DAI Vault on MetaMorpho in March, an increasing interest of DAI has been utilised on Ethena's USDe product, totalling $450.24 million deposits. With currently 99.65% of the vault allocated in sUSDe or USDe vault expanding yield for DAI holders.

• The growing use of Spark's products, tangentially expands the DAI ecosystem — as rates fluctuated and the TVL doubled from November onwards, DAI's utilization has remained above 90% and currently sits at 94.9%. This has generated well over $79.92M in revenue for MakerDAO.

• 💦🔬 Tx-Level Alpha: On June 1, a user made a $116M deposit in the wstETH Spark vault, and borrowed $26M DAI, making it the largest deposit into the protocol to date! This shows the increasing demand from large players to interact with Spark's vaults and leverage DAI.

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