The Resurgence of Ethereum and DeFi: A New Round of Ecological Synergy and Leverage Innovation

The Ethereum ecosystem is迎来 a new wave of DeFi craze, with protocols like Aave, Pendle, and Ethena injecting new vitality into the market through a循环贷款 model. Compared to the DeFi Summer of 2020, this time the leverage growth curve based on stablecoins like USDe is more gradual.

Currently, we may be entering a relatively mild long cycle. The evaluation of on-chain protocols mainly focuses on two aspects: first, the involvement of a more diversified asset type, where external liquidity will be more abundant under the expectation of possible interest rate cuts by the Federal Reserve; second, exploring the limits of leverage multiples and the corresponding safe deleveraging process, that is, how individuals can exit safely and how a bull market may come to an end.

In the DeFi ecosystem, Ethereum's dominant position remains evident. In July, Ethereum accounted for over 60% of the overall DeFi TVL, while Aave occupied over 60% of Ethereum's ecosystem TVL. This highlights the application of the "80/20 rule" in the crypto ecosystem, where other protocols must maintain close ties with these two giants to gain attention.

With the rise of the circular loan model, the connections between Ethereum, Aave, Pendle, and Ethena have become closer. Together with Bitcoin, WBTC, ETH, and mainstream stablecoins constitute the foundational assets of Decentralized Finance. However, pure stablecoins or staking tokens (such as Lido), while possessing asset attributes, are somewhat lacking in ecological value.

By analyzing the "demand" level of various protocols, six core protocols can be summarized: Pendle, Aave, Ethena, Ethereum, HyperEVM, and Bitcoin. These protocols are closely related and can almost be connected directly or through an intermediary protocol.

It is worth noting that HyperEVM/Hyperliquid, as an emerging ecosystem, is actively integrating into the Ethereum ecosystem. They are expanding their influence in various ways, including collaborating with existing DeFi protocols, developing new products, and connecting liquidity across different blockchains.

In this closely connected ecosystem, the synergy of Ethereum is particularly significant. For example, $1 of Ethena funds can be hedged with ETH, entering protocols such as Pendle and Aave for value circulation, while the generated Gas fees feed back into the value of ETH. This virtuous cycle makes ETH second only to Bitcoin in terms of value closed loops.

However, the expansion of DeFi is not unlimited. Aave, as a leader in the lending space, has its influence extending beyond a single protocol, becoming almost an infrastructure in its own right. However, it also faces challenges from emerging protocols such as Maple, Fluid, and Morpho.

Overall, the current DeFi ecosystem is undergoing a qualitative leap. From Pendle expanding the derivatives market, to Ethena creating a new paradigm for stablecoins, and Aave solidifying its position in lending infrastructure, each protocol is seeking its own growth points. Meanwhile, Bitcoin and Ethereum, as the cornerstones of the entire blockchain economy, still play a key role in the growth indicators of DeFi.

This core ecological network, composed of six major protocols, showcases a new pattern in the crypto market. High levels of collaboration not only enhance the efficiency of capital utilization but also increase the resilience of the entire ecosystem. However, this close connection also implies a systemic transmission of risk. Therefore, transitioning from ETH to yield-bearing stablecoins (YBS) such as USDe as DeFi underlying assets may make the entire ecosystem more stable when facing market fluctuations.

To stand out in this fiercely competitive market, emerging protocols must work hard to establish connections with the existing "crypto deities" and build a strong protocol network to secure a place in this ever-evolving ecosystem.