Ethena Pay launched Earn+, bringing an ~11x leveraged defi strategy into a consumer finance app. Users can move USD into Earn+ to access a target yield of up to 12% APY, compared to up to 6% on the regular USD Account. Behind the one-tap experience is a vault running on @aave V4 on @avax. 🧵,

RWA is gaining traction across @aave's lending markets. $1B+ in RWA-related deposits now sit across V3, V4, and Horizon. 🧵, https://t.co/jXJXJphD0o

RedStone turns 6 today, and it's building the infrastructure to power the RWA decade and the next era of onchain finance. Six years ago, @redstone_defi started as an oracle focused on solving asset pricing challenges that traditional oracles had yet to address. From liquid restaking and synthetic dollars to staked Bitcoin and tokenized funds, RedStone has continuously expanded its infrastructure to meet the market's increasingly complex pricing needs. Today, RedStone secures over $9B in assets across 110+ chains, serving 200+ clients and partners, including @BlackRock BUIDL, @Securitize, @CantonNetwork, and even pre-IPO markets on @HyperliquidX. But imo, the biggest milestone lies in RedStone's evolution from a price oracle into a broader financial infrastructure stack: Price: Reliable asset pricing data Settle: Near-instant liquidity, exits, and liquidations Risk: Credit risk assessments through @CredoraNetwork ratings Compliance: Onchain sanctions screening through Sanctions Oracle Together, these layers lay the foundation for RedStone's next chapter: making tokenized assets liquid, productive, and ready to scale across onchain finance.

imo, one of the most valuable insights from @paretocredit's article is that most real Bitcoin borrowing demand sits in the OTC market, where hedge funds, prime brokers, and financial institutions borrow Bitcoin to support their operations. Onchain, Bitcoin is mostly used as collateral, leaving lending rates close to zero. This gap is exactly what credit products like Pareto x Two Prime aim to address, bringing offchain institutional borrowing demand onchain through a more structured credit model. So what makes this Bitcoin Credit product different from traditional OTC lending and existing onchain markets? 1. Yield backed by institutional credit demand The vault currently offers around 1.61% net APY, paid in $WBTC. That's significantly higher than most onchain Bitcoin lending pools, where limited borrowing demand keeps rates near zero. More importantly, the yield comes from interest paid by institutional borrowers rather than relying on token incentives. 2. Credit structure designed for institutional lending Rather than operating as a typical lending pool, Pareto structures the vault as a credit facility with defined risk controls. @Two_Prime puts up 150 WBTC of its own capital as first-loss protection, absorbing credit losses before they reach lenders. The vault also has monthly redemption cycles and a Credit Agreement outlining lender rights and recovery procedures. This follows the hybrid onchain + offchain model that Pareto has already demonstrated across its previous Credit Vaults. 3. A new access channel for institutional Bitcoin credit The product opens institutional Bitcoin credit exposure to eligible lenders holding capital onchain. Previously, accessing OTC lending opportunities often required direct institutional relationships, with limited flexibility around participation. By bringing this exposure onchain, Pareto creates another channel for capital allocation beyond traditional OTC relationships. 4. The composability potential of $pAXIOMBTC For me, this is the strongest advantage of bringing Bitcoin credit onchain. Unlike traditional OTC positions, the vault's receipt token can potentially be integrated into secondary markets, money markets, or more complex structured DeFi products. That opens the door for the same Bitcoin credit exposure to gain additional liquidity, distribution, and utility across DeFi.

11 Aave markets ended Q3 with $1.3B+ in deposits and $417M borrowed. Across V3 and V4, @aave expanded into new chains, consumer credit, and different lending structures. A few things stood out to me 🧵 https://t.co/hmLrHJeDAm

Tokenized stocks on @base are finding more use cases in DeFi. 3% USDC incentives to boost tokenized stock deposits on @aave V4 $1.2M in collateral from @superformxyz, bringing automated carry trade strategies to retail users. 🧵, https://t.co/i1644ZX8Jv

ngl, keeping up with hundreds of sanctions lists is a headache for defi teams. so @redstone_defi built a Sanctions Oracle that lets protocols screen wallet addresses against 463 sources covering OFAC, UN, EU, and other sanctions lists through a single onchain check. protocols can query the oracle during a transaction and revert if an address is flagged, embedding sanctions screening directly into the execution flow. updates are pushed onchain weekly with a timestamp, so protocols can set limits on how old the screening data can be. the contract also uses the same interface as Chainalysis’ sanctions oracle, simplifying integration for protocols already using that interface. potential use cases include: - stablecoin issuers - tokenized funds - lending protocols - permissioned pools imo, the key shift is making sanctions screening part of how a protocol operates. for institutional, that means access rules can be enforced directly by smart contracts at execution time.

Aave V4 is starting to look like a market factory. $1.38B in deposits and nearly $420M in active loans are impressive, but the more important story is V4's expansion into different types of credit markets. 🧵, https://t.co/9X0JJyxGPK

Pareto’s OTC Desk gives idle stablecoins another place to work. If an LP wants cash before the loan cycle ends, they list their Credit Vault position at a discount. A buyer pays USDC, takes the position, and collects the remaining yield. @paretocredit maps a few ways RWA protocols could plug in: > Settlement liquidity: Grove Basin, Symbiotic Liquid Lane, and Upshift Clear can deploy USDC that isn’t needed for redemptions yet, and pick up discounted credit instead. > Unwinding leverage: 3F and Keyring can sell a Credit Vault position mid-cycle instead of waiting for the underlying to redeem. > Buying below NAV: Agra already runs vaults that source tokenized credit at a discount. OTC Desk is another place to find sellers. The pricing is the neat part. The seller’s ask stays fixed in USDC while the vault token keeps accruing, so the discount widens until someone fills it. When a buyer steps in, USDC and vault tokens swap in one transaction. They can hold to maturity or list the position again if they need cash. That second exit still needs a buyer. Redeeming the vault itself requires KYC.

$15M in active loans / $18M in deposits $mUSD from MetaMask Money Account is being absorbed quickly by Aave. Idle capital is being put to work as onchain credit. On Aave @monad, mUSD acts as a borrowable stablecoin, with positions mainly backed by assets already available in the market such as syrupUSDC, cbBTC, and WETH. This model is testing a new way to scale DeFi: instead of waiting for users to find a protocol, tap into the float already sitting inside the wallet or card products they use. @MetaMask : builds the savings layer on top of existing distribution @aave : turns those balances into credit and generates yield from borrowers Still early, but it looks like a pretty clean win-win model.